‘Beyond what is reasonable’: Government clamps down on clubs’ pokies revenue spending

The aim is to allow the entire community to benefit from poker-machine revenue.

Canberra clubs will be forced to hand over hundreds of thousands of dollars more in gaming machine revenue to fund community initiatives, after it was found some clubs were spending the money on airline lounge memberships and professional sporting teams.

Clubs are already required to spend 8 per cent of money raised from gaming machines on community groups and causes, but laws before the Legislative Assembly today will increase that to 8.8 per cent.

Based on 2016-17 revenue, that equates to about $750,000 in additional spending.

Regulatory Services Minister Gordon Ramsay said the changes would ensure the community got an acceptable benefit from the use of poker machines across the territory.

"The scheme comes from a very specific privilege that clubs have to operate gaming machines," he said.

"There needs to be more money for the community, and these reforms deliver on that."

Of the additional 0.8 per cent of revenue, half would go to gambling harm reduction initiatives and the other half to the centralised Chief Minister's Charitable Fund, which would independently decide where the money goes.

"[This] will mean that gaming machine funds reach even more community groups, including those who do not have relationships with clubs," Mr Ramsay said.

Clearing up what is a worthy cause

In April, the ACT's auditor-general found some clubs were claiming spending on professional sporting teams and airline lounge memberships under the scheme.

Mr Ramsay said clubs needed to ensure their contributions were genuinely benefitting the community.

"There has been times when things have been beyond what was reasonable … there needs to be clearer guidance," he said.

Larger clubs would also be restricted in how much of their contributions could be provided "in-kind", such as free room hire.

"We believe that it's very clear that the community contributions scheme should be benefiting the community as a whole and we'll be delivering on that," he said.

In 2016-17, clubs claimed well over the mandated minimum of 8 per cent for community contributions, spending nearly $12 million or 12.6 per cent.