NT clubs 'whitewashing' pokies revenue through community benefit fund, critics say
The NT's 20 licensed not-for-profit clubs contributed less than $4 million of the community benefit fund's (CBF) $23 million total revenue last financial year, with the cash required to be redirected to gambling amelioration and research and community grants.
That figure represents 9.5 per cent of the $41.65 million in total gaming revenue collected across all clubs, according to the CBF annual report.
But unlike hotels and casinos, which must pay a flat 10 per cent levy into the CBF, clubs only have to report whatever voluntary contributions they make, whether cash or "in kind".
In 2023-24, three clubs — the Darwin Bowls and Social Club, the Darwin Trailer Boat Club and St Mary's Football Sporting and Social Club — elected to contribute $0 in cash.
Instead, those clubs made in "in kind" contributions to the sum of $218,327, from a total combined revenue of $328,174.
NT government guidelines define "in kind" contributions as including "discounts on a range of goods or services provided by clubs, or the free or subsidised use of a club's facilities or equipment".
Of the clubs that did pay into the CBF, the most generous contributor in 2023-24 was the Katherine Country Club, which paid more than a third of its $2.8 million in gaming revenue, or just over $1 million, into the fund.
The least generous contributor was the Darwin Golf Club, which paid in just $1,950, less than 0.01 per cent of its total poker machine revenue of more than $2 million.
Affiliates of other clubs also received generous NT government funding in the same financial year.
They included affiliates of Silks Darwin and the Tracy Village Social & Sports Club (TVSSC), which contributed 2.8 per cent and 1.4 per cent of their $3.7 million and $3.1 million in pokies takings to the fund respectively.
Thoroughbred Racing NT (TRNT) — which contributed more than $3 million to Silks owner, the Darwin Turf Club, in 2023-24 — pocketed a $15.7 million racing industry grant.
TVSSC took home a $26,390 visitor experience enhancement program (VEEP) grant, while at the same time its affiliated cricket and football clubs each received funding directly from the CBF, including $200,000 for a "complete overhaul of [the] pump and irrigation system".
In total, TVSSC and its affiliate sporting clubs pocketed $241,150 in government funding in 2023-24 while contributing just $44,629 in cash and $320,013 "in kind" to the CBF — receiving a total of $170,131 more out of the CBF than they put in.
The CBF is governed by the Gaming Control Act, which lists among its objectives the promotion of "a balanced contribution by the gaming industry to general community benefit and amenity".
But Monash University gambling researcher Charles Livingstone said there was "a real lack of transparency" in the NT scheme, branding it "a whitewashing exercise".
"It's an alibi to provide the cover for pokies venues that somehow they're contributing to the community when in fact they are imposing considerable harm," he said.
"And the benefits that they provide to the community through these types of activities are often a tiny proportion of the harm that is inflicted."
Dr Livingstone said a less "opaque" approach would be to "simply take a bigger share of pokies revenue into general taxation revenue".
"I think if the system is to persist then the community needs to know where the club money is going, and there needs to be tight guidelines against this double dipping," he said.
Gerry Wood is a patron of the Southern Districts Cricket Club, which received $178,000 in grants under the CBF in 2023-24.
He said while the club was happy with its facilities, he was concerned about fairness across the competition when some teams could access the CBF on top of potential pokies revenue from an affiliated venue.
"Should there be a level playing field or should [some] clubs have an advantage?" he said.
"I think that's an opportune time for the government to say, 'Well look, let's have a look at it and see if it's actually doing what the legislation said it should do,' and if the legislation needs changing, well so be it."
Retired Darwin public servant Doug, who asked for his surname not to be used, was addicted to gambling on poker machines for the best part of two decades and estimates he lost hundreds of thousands of dollars before finally kicking the habit three years ago.
"I'd spend a fortnight's wages in three hours and I'd be left with the food I had at home or the loose change in my pocket," he said.
The 62-year-old said if not-for-profit clubs were "committed to doing something to benefit the community", they would find a way to "do it without having to raise funds from gambling".
"I think any money that comes from gambling can't repay the way it was earned, it's already done a lot of damage coming into existence," he said.
"If it's used for anything of a social benefit it's only part of the value that it used to have.
"The parents of sporting teams are often happy to contribute — they're less able to contribute if they're putting the money into poker machines and relying on then a portion of that money coming back through the venues."
Mr Wood said Southern Districts had previously considered getting its own poker machines to help raise revenue, but decided against it.
"Even though some sporting groups might like the idea, I'm not sure the community as a whole really wants to see an expansion of poker machines," he said.
None of the NT social clubs responded to questions from the ABC.
In a statement, NT Racing Minister Marie-Clare Boothby said "in kind" contributions were "often in the form of subsidised or free access to facilities".
"That's a real, measurable benefit, especially for smaller groups that rely on this support," she said.
"All contributions, including in-kind, must be itemised, and are scrutinised to ensure they meet the guidelines."
Ms Boothby said while venues with gaming machines were barred from applying for CBF grants, their affiliated sporting clubs were "financially independent and assessed separately on merit".
"We will always consider improvements to legislation to ensure it reflects community expectations — but we are also mindful of unintended consequences," she said.
"A flat levy on clubs could result in reduced support for local not-for-profits or even club closures, especially in regional areas."
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