In short:
Documents shared with the ABC reveal the Independent Liquor and Gaming Authority wanted to give up oversight of a pokies tax scheme, it believed had "constraints and issues".
asserted
it → share → constraints
NSW clubs operating poker machines are given tax discounts under the scheme if they donate a fraction of their annual profits.
Greens MP Cate Faehrmann says ClubGrants lets clubs buy community goodwill on the taxpayer's dime, despite the harm caused by poker machines.
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clubs → operate → machines
Every year, clubs around the state operating poker machines throw parties where they present money to community groups and charities.
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they → operate → groups
Giant novelty cheques are handed to people who smile for the cameras.
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who → hand → cameras
But rarely is it mentioned that the money comes from the type of gambling the NSW government considers to be most harmful; poker machines.
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government → mention → gambling
The clubs operating 65,000 poker machines in NSW are given tax discounts under the ClubGrants scheme, if they donate a fraction of the $5 billion in annual profits to community organisations.
But the scheme has proven controversial, dogged by reports that clubs have been awarding grants to their own groups, facilities and projects.
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clubs → operate → groups
Now, documents shared with the ABC reveal the Independent Liquor and Gaming Authority (ILGA) believed there were "constraints and issues" with the ClubGrants scheme, and that it wanted to offload oversight to another agency.
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it → share → agency
The bundle of documents were obtained by Greens MP Cate Faehrmann, who used a parliamentary process known as a Standing Order 52 to compel the NSW government to release them.
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who → obtain → them
'Constraints and issues'
The ILGA wanted to relinquish oversight of the ClubGrants scheme due to compliance concerns, according to its submission to a recent review.
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ILGA → want → review
It cited the yearly "burden" of having to conduct preliminary checks on applications submitted by more than 500 clubs, within a period of two weeks or less.
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It → cite → weeks
Chairperson Caroline Lamb said the workload "practically limits the authority's ability to most effectively monitor the compliance with the Scheme".
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workload → say → Scheme
"The Chief Commissioner [of State Revenue] is best placed to administer a tax rebate program," she said.
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she → place → program
It agreed with the "constraints and issues" raised in a discussion paper by the regulator, Liquor and Gaming NSW.
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It → agree → regulator
One of them is that clubs and community groups do not need to verify how the grant money is spent.
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money → need → them
Another is that clubs can ignore recommendations by local committees to award a particular type of grant to "any organisation or program".
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clubs → ignore → organisation
Most of the grants awarded by clubs went to sporting groups, according to the ClubGrants 2025 contribution report.
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Most → award → report
Of the $127 million awarded that year, $53.3 million went to sporting programs and facilities.
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million → award → programs
This is more than the combined grants for health, disability inclusion, education and early learning, domestic violence, mental health, veterans, emergency services and homelessness.
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This → combine → health
The industry lobby group, Clubs NSW, did not respond to questions and requests for comment.
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group → respond → comment
Clubs responsible for 'scheme's integrity', ILGA says
The ABC asked the ILGA if it still held concerns about the ClubGrants scheme.
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it → say → scheme
A spokesperson said its role was to support clubs as they were the "stewards of the scheme's integrity".
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they → say → integrity
It said the guidelines ensured "there is accountability for expenditure of the tax revenue foregone".
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guidelines → say → revenue
The NSW government ordered the first formal review of the ClubGrants scheme in more than 10 years, after coming into office in 2023.
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government → order → 2023
It received a final report in January 2025, but it has not released it or shared its findings despite repeated requests.
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it → receive → requests
The office of the NSW Minister for Gaming, David Harris, said the findings were still being considered.
"
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findings → say → Gaming
We have … updated the guidelines to clarify funding for statewide services and ensure tax obligations are understood," a spokesperson said.
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spokesperson → update → services
Ms Faehrmann said the ClubGrants scheme allowed clubs to pay less tax while buying community goodwill, despite the harm caused by poker machines.
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clubs → say → machines
"The changes to the guidelines are just tinkering around the edges.
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changes → tinker → edges
I can't even see the difference, frankly, when I've compared the two," she said.
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she → see → two
"ClubGrants is what the clubs rely upon to push back against any reform.
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clubs → rely → reform
The allegation was put to Clubs NSW, but it did not respond.
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it → put → NSW
A rehab waits for the final report
Some non-profits have been left in limbo as they wait for the state government to release the review's final report before deciding if they should participate in the ClubGrants scheme.
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they → wait → scheme
An example is Odyssey House in Sydney's south-west, which operates one of the largest alcohol and drug rehabilitation services in the state.
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which → operate → state
Among the documents shared with the ABC is an email from Odyssey House's chief executive to the office of the minister for gaming.
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email → share → gaming
"For many years we participated in the ClubGrants scheme," chief executive Carmel Tebbut said in the email on November 7, 2025.
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Tebbut → participate → November
"The Board took a decision last year to pause our participation in the scheme due to both governance concerns and potential conflict of interest, given we support people with addiction issues."
Ms Tebbut, the state's former deputy premier, had asked for an update on when the review would be released.
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review → take → update
"The Board agreed they would reconsider the matter when the Governments (sic) review of the ClubGrants scheme is finalised," she said.
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she → agree → scheme
The ABC contacted Odyssey House, but the organisation declined to comment.
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organisation → contact → House
The Aporia