BALANCING REFORM AND SURVIVAL: WHY GAMING REVENUE MATTERS FOR ACT CLUBS
In an attempt to reshape the future of community clubs, the ACT Government has launched an independent inquiry into the club industry, aiming to shift the sector away from its reliance on gambling revenue. Set to begin mid-2025, the inquiry will play a pivotal role in crafting a 20-year roadmap toward a more diversified, sustainable and socially beneficial industry.
As the ACT Government prepares to launch the independent inquiry into the future of the territory’s club industry, a crucial issue hangs in the balance—how to preserve the financial health of community clubs while reducing reliance on gaming revenue. While reform is on the horizon, it is obvious to many active within the sector, that well-intentioned policies may overlook the vital role gaming income plays in keeping clubs—and the communities they support—alive.
The Lifeblood of ACT Clubs
For decades, gaming machines have been a key revenue source for clubs across the ACT. Far from being just a profit centre, this income stream underpins a wide range of community activities and services. From sponsoring local sports teams to offering subsidised meals, affordable entertainment, and social inclusion programs, club profits often flow directly into the wellbeing of the local population.
At the heart of the inquiry is a vision to help clubs transition to new business models that are not only financially viable but also aligned with broader community needs. The inquiry will explore potential regulatory and tax changes to support this transformation, while also assessing workforce requirements such as skills development and retraining initiatives.
Clubs will be encouraged to innovate their business operations—whether through enhanced food and beverage services, event spaces, wellness and fitness offerings, or other ventures that foster community engagement without relying on gambling.
As the ACT Government pushes forward with its plan to reduce the number of poker machines in the territory to just 1,000 by 2045—a drastic drop from nearly 5,000 in 2016—many club operators are questioning how they will continue to operate without severely scaling back their community support.
Risk of Regional Displacement
One of the unintended consequences of this reform could be the displacement of gaming activity just across the border. If local clubs can no longer offer gaming, there’s a strong chance that demand will simply shift to surrounding regions in NSW. The result? ACT residents continue to gamble, but the social and economic benefits—jobs, community investment, and hospitality income—flow outside the territory.
This outcome would not only weaken ACT clubs but could also erode the very community fabric the government aims to strengthen. Rather than reducing harm, it may simply relocate it, while simultaneously stripping ACT communities of vital social infrastructure.
Concerns Over Inquiry Independence
The upcoming inquiry, due to begin mid-2025 with a final report expected in 2026, is intended to guide the sector toward more sustainable, diversified business models. There is a risk about how the process is being shaped. There are always concerns that the inquiry could be awarded to a consultancy with a strong anti-gambling stance, potentially skewing the outcomes from the outset.
A genuinely independent, balanced perspective is essential. The inquiry must acknowledge that, while harm minimisation is a legitimate goal, gaming revenue is currently central to club viability. Any strategy for reform must be practical, realistic, and built on a true understanding of the financial mechanics that keep clubs running.
The Need for Pragmatic Solutions
ClubsACT has been actively engaging with the government to ensure the inquiry reflects the industry’s realities. Issues such as the introduction of mandatory cashless gaming, license reductions, and workforce impacts are all on the table, and ClubsACT is advocating for evidence-based policy that considers long-term sustainability.
Retraining staff, reshaping business models, and potentially redeveloping club-owned land for aged care or housing are all parts of the proposed roadmap. But without a solid plan to offset the loss of gaming revenue, these ideas risk being financially unviable.
The Bigger Picture
Ultimately, ACT clubs are more than venues with poker machines—they’re community hubs that rely on gaming revenue to function. Removing this lifeline too quickly or without sufficient support may lead to closures, job losses, and a reduction in the very community services that policymakers seek to protect.
The ACT risks losing not only gaming machines, but also the vibrant, community-focused institutions that have been built around them.
Written By: Justine Channing (Gaming Specialist) for The Drop
