NT Clubs' Community Contributions Scrutinized Over Internal Spending and Public Donations

Northern Territory Pokies Clubs: Community Contribution Reporting Under Scrutiny

A recent analysis of Freedom of Information documents has revealed that the majority of 'community contributions' reported by not-for-profit clubs in the Northern Territory, which operate poker machines, are allocated to internal club expenses or member benefits. This occurs under a voluntary scheme intended to redistribute gambling losses to the wider community.

In the Northern Territory, pubs and casinos are subject to a 10 percent levy on poker machine losses. This revenue is directed into the government's Community Benefit Fund, which subsequently provides grants to community and sporting organizations, and funds gambling research and harm minimization initiatives.

Conversely, not-for-profit clubs generating substantial poker machine revenue participate in a separate, voluntary Community Support Contributions (CSC) scheme. This scheme requires clubs to publicly report their total contributions. For the 2023-24 period, 20 NT clubs reported almost $4 million in 'cash' and $1.6 million 'in kind' contributions from a total gaming machine revenue exceeding $41 million.

Documents obtained via Freedom of Information laws indicate that a significant portion of the clubs' 'cash' contributions have been spent on their own facilities and affiliated sports teams. While reporting statements stipulate that contributions "must be for the benefit of the general public or community," various clubs listed expenditures on member perks, venue renovations, and equipment.

Examples of reported contributions include:

• Nightcliff Sports Club: A $585,000 'cash' contribution for "upgrade of club infrastructure" and an additional $28,000 for "furniture," identified as benefiting "members, affiliates, guests and community." The club also reported $10,000 in donations to RSPCA and CareFlight, raised via "collection tins on the club bars."
• Cazalys Palmerston: A $115,000 sponsorship deal with AFLNT, alongside smaller donations to Dolly's Dream ($214) and Make-A-Wish Foundation ($263).
• Gillen Club (Alice Springs): A new patio and outdoor furniture valued at $48,535, specified for the benefit of "patrons of the club."
• Silks Racing Darwin: $22,877 in reported donations from "raffle takings" and "meat trays" contributed by club patrons, representing over half of the club's total 'cash' contribution.
• Other reported 'in-kind' contributions included $1,500 for six months of complimentary ice for members and $200 for free venue hire for a member's 50th birthday.

These reported CSCs appear to deviate from the ministerial guidelines for legitimate contributions.

The 2023 Gambling Prevalence and Wellbeing Survey Report, released late last year, highlighted several findings:

• The Northern Territory recorded double the national average rate of problem gamblers, with nearly one in ten punters classified as problem or moderate risk.
• Out of $222 million injected into pokies machines in 2023 by 44,982 NT players, 4,324 problem gamblers accounted for almost $122 million.
• Indigenous Territorians incurred losses more than three times higher than the average non-Indigenous gambler, at $8,473 per person annually.
• Independent statistician and gambling researcher Matt Stevens stated that problem gamblers contribute between 50 to 80 percent of the industry's profits.
• The societal cost associated with gambling harm in the NT is estimated at up to $400 million annually, significantly surpassing the $115 million generated from all forms of gambling tax in the territory.

While community clubs do not contribute their poker machine revenue to the Community Benefit Fund, the NT government receives millions in general revenue through the Community Gaming Machine Tax. In the 2024-25 financial year, pokies gamblers contributed over $51 million via this tax, representing 44 percent of the NT's total gambling tax revenue and over 6 percent of its total taxation revenue.

Darwin psychologist Nicola Coalter observed a "silent crisis" regarding gambling harm, noting its ripple effect on up to 15 individuals for every person directly affected. She also noted that the proximity of poker machines to residential areas correlates with increased harm.

A spokesperson for NT Hospitality Minister Marie-Clare Boothby stated that clubs' community contributions are "assessed against clear ministerial guidelines by the independent Director of Gaming Control." The spokesperson also claimed that implementing the 10 percent levy on clubs, similar to pubs and casinos, would render some clubs financially unviable, citing their not-for-profit status and reinvestment of surplus revenue into community outcomes.

The Nightcliff Sports Club's spokesperson stated that the venue is under new management and has been "working with the department since the middle of the year to correct previous reporting errors, and ensure our compliance with community benefit reporting obligations meets the department's expectations." Other clubs named in the article did not provide responses to enquiries.