NSW Government Accused of Deliberately Delaying Pokies Grant Scheme Report

The ClubGRANTS program has been a major part of New South Wales’ gambling funding model for decades. Introduced in 1998, the scheme allows clubs that operate pokie machines to receive tax concessions if they donate part of their gambling profits to community organisations.

Dozens of clubs across NSW generate billions of dollars each year from pokies, so under the ClubGRANTS framework, they can claim tax rebates when they distribute a portion of those profits to charities, sporting organisations, and local community programs.

Reports say that the scheme has delivered more than $1.5 billion in funding since it began, making it one of the largest community grant programs linked to gambling revenue in the country. In the most recent reporting year alone, clubs donated more than $127 million to over 7,600 community groups across the state.

Supporters of the scheme (read: clubs and pubs) argue that this funding helps sustain local projects, such as sports clubs and other organisations that might otherwise struggle to find financial support. Many grassroots sports clubs, youth initiatives, and social programs rely heavily on ClubGRANTS funding to survive.

However, the programme has been under attack by critics in recent years who say that the system creates a complicated relationship between gambling profits and community support. They argue that clubs maintain too much influence over how the money is distributed and that the process lacks transparency compared to other government grant programs.

The current controversy stems from a government review intended to examine how the ClubGRANTS system operates and whether reforms are needed.

The NSW government commissioned the review as the first major examination of the scheme in more than ten years. Reports suggest that officials received the final document in January 2025, but the government has yet to release it publicly more than a year later.

Opposition politicians and some community groups claim the delay is intentional. They argue the report could contain recommendations that may affect the powerful clubs sector, which relies heavily on pokie machine revenue, or worse, reveal that the actual distribution of ClubGRANTS funding does not fully match the figures that clubs have publicly reported over the years.

Government representatives have rejected accusations of deliberately delaying the findings. Officials have said the report will be released “in due course,” although no clear timeline has been provided.

The delay has only intensified the ongoing debate around the role of pokies in New South Wales, where clubs operate tens of thousands of pokies and generate billions in gambling revenue every year.

One of the main issues raised around the ClubGRANTS scheme is how funding decisions are actually made. Unlike many government grant programs, where independent panels evaluate applications, ClubGRANTS funding often goes through committees that include representatives from the clubs themselves.

In practice, this means that venues that generate the gambling revenue also play a role in deciding which organisations receive funding. While the system is designed to support local communities, critics say it creates a potential conflict of interest because the same industry that benefits from pokies revenue also helps control where some of that money goes.

Another concern is transparency. It’s almost impossible to access detailed information about how grants are allocated, and community organisations have complained over the years that the application process can favour groups with strong relationships with local clubs.