The new law sets a ratio of 15 poker machines per 1000 adults in Canberra, a ratio the government estimates will allow 4785 machines in 2018, a reduction of 121 on current numbers, when it takes effect in three years. The number of machines will be set every two years, rising with the population.

Meantime, a trading scheme will operate, with clubs allowed to increase poker machine numbers this year to get the trading scheme underway. Clubs will be able to buy and sell machines between them for the first time, and can also buy the outdated machines in hotels and pubs and convert them to modern machines. For every four machines they buy, one is forfeit, as a way of reducing overall numbers.

Hotels and pubs are banned from getting any extra poker machines under the new law.

The new tax rates will deliver an $18,000 tax cut for most clubs, paid for by the bigger clubs. The government says 29 clubs will pay less tax, 13 will have no change and eight clubs will pay more.

Mr Smyth said the law introduced a raft of new red tape and complication for clubs. He also questioned the ratio of 15 machines for 1000 adults, asking how the government had arrived at the target. Answers from officials suggested the ratio had been chosen simply because it was below the NSW ratio of 17 machines for every 1000 people, Mr Smyth said, accusing the government of "

than any other state or territory. The Australian average is 11.1 machines for each 1000 people.

The ACT's gambling taxes are also well below other states and territories.

Gaming Minister Joy Burch said the package was the culmination of years of work, and was "aimed squarely at supporting the long-term viability of Canberra's community clubs", while keeping safeguards for the community.

The poker machine ratio was "appropriate for an industry going through a period of adjustment", she said.

The law was passed with the support of the Greens' Shane Rattenbury, who said it provided a mechanism to reduce the number of poker machines.