Independent inquiry to be launched into future of ACT club industry

Across Australia’s eastern states, clubs and pubs are increasingly shunning poker machines mostly in response to the growing anger across the nation about the impact of devastating gambling losses.

Alliance for Gambling Reform Chief Executive Carol Bennett last year told the Institute of Community Directors Australia “there is a growing backlash against gambling in Australia.

“Faced with inaction from government, some pokies venues are taking matters into their own hands to stem community losses from gambling.

“Australians lose more to gambling than any other country on a per capita basis. Our losses top a staggering $25 billion every year – and poker machines (in our pubs and clubs alone) account for more than $14 billion of these losses.”

With an anti-gambling sentiment present within many club communities, as part of the next step toward reducing the number of poker machines in the ACT to 1,000 by 2045, an independent inquiry will be launched into the future of the ACT club industry, focused on helping clubs diversify their revenue and reduce reliance on gambling income.

The ACT Government will shortly release an open tender to conduct the Independent inquiry into the future of the ACT clubs industry, with a report due back to government in early 2026.

ACT Minister for Gaming Reform, Dr Marisa Paterson, said the inquiry would explore ways for clubs to diversify their revenue streams and reduce reliance on gambling revenue.

Dr Paterson noted “The ACT Government is committed to addressing the harm caused by gambling. A key part of that work is supporting the club sector to move away from reliance on gambling revenue, so the industry can become more sustainable and continue to thrive in ways that benefit the entire community.

“Clubs play an important role in fostering community connection, we want to work to see a sustainable club sector in the ACT. That means working with them to transition to different, more sustainable business models.

“This inquiry is a significant step toward progressing the ACT Governments goal of 1,000 poker machines in the ACT by 2045. We’re already on track to reduce gaming machine authorisations to 3,500 by 1 July 2025, down from 4,956 in 2018. This reduction has been supported by targeted assistance to help clubs diversify their operations.”

“While many clubs have made great progress in diversifying, there is still significant work to be done – this inquiry is aimed at understanding what that work should involve. This will include developing a 20-year roadmap to support the transition of the sector.”

Several community clubs in Canberra commenced their transition away from poker machine revenue reliance a few years ago. diversifying their business models to initiatives including an early learning centre and an electric vehicle charging station.

In 2021, the diversification measures were part of $632,811 in grants to help fund initiatives as part of the ACT Government’s Diversification and Sustainability Support Fund, which helps Canberra’s clubs diversify their business models away from gambling-based revenue.

The Canberra Southern Cross Yacht Club in Yarralumla, which has been poker machine free since 2019, received a grant of $101,518 in 2021 to install solar panels and light fittings as well as an electric vehicle charging station to offset the revenue from poker machines.

Other grants include $155,000 to Belconnen Bowling Club to upgrade and reopen its kitchen, and $100,000 to Belconnen Soccer Club to develop an early learning centre at the club’s McKellar site.

And it was not just Canberra Clubs taking action as Bennett added “more than 15 years ago, Sydney’s Petersham Bowling Club ditched its poker machines in favour of community events such as country music hoedowns, spring fairs and craft beer festivals, leading to a 900% increase in revenue.

“In the Illawarra region south of Sydney, the Coledale RSL club had shut its doors forever – then a group of locals stepped in and sold off the pokies. The club has now become a thriving community hub.

Bennett highlighted “our political leaders talk a lot about the importance of reducing gambling harm in the community.

“However, the simple fact is many of our governments are captured by the gambling industry and addicted to the revenue that poker machines bring in.”

The 2025 inquiry into the future of the ACT club industry will identify practical options, timeframes and measures to support the club industry, its workforce and other stakeholders during the transition, including:

Possible changes to regulatory or tax settings to support the establishment of alternative revenue streams for clubs.

Skills and training requirements for club sector workers to support repositioned industry activity or workforce transitions.

Future uses of club-owned land to provide community benefits, including affordable housing, aged care and supported accommodation.

The economic and social contributions of the club sector will also be measured to inform the economic analysis.

Parties interested in participating in the open tender to conduct the Inquiry can visit www.tenders.act.gov.au where they can register as a supplier and then submit a response to the request for quotation, when it is released.