A scheme that has allowed Canberra's clubs to claim payments to elite athletes and massage therapists as "community contributions" will be reviewed this year.
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The ACT's poker machine laws force clubs with a gross revenue of more than $200,000 to pay 8 per cent of their net revenue as community contributions, in categories that include charitable and social welfare, problem gambling, sport and recreation, non-profit activity and community infrastructure.
But last year, a leading gambling researcher found the scheme was deeply flawed.
Dr Charles Livingstone of Monash University found much of the money went back to the club or their related parties.
This included paying $830,000 to elite sports players and $36,000 for physiotherapy and massage, $3910 for drug testing and $1500 for fines for forfeits and melees, as well as almost $800,000 as in-kind contributions for giving sports groups use of club rooms.
Dr Livingstone said the clubs were not breaking the rules, but urged the government to review the rules immediately.
A PwC "impact analysis" commissioned last year by the ACT government found nearly a fifth of the community contributions paid out in 2015-16 did not have a wider community benefit.
However the report showed it would be more expensive if another party had to fund the sports and recreation facilities provided by clubs under the scheme.
ACT gambling minister Gordon Ramsay told the Canberra Times the review was in line with Labor's power-sharing deal with the Greens and would look for ways to improve the scheme.
"It is part of a broader effort by government to help clubs focus on and deliver their important community services," Mr Ramsay said.
Clubs ACT chief executive Gwyn Rees said the community contributions scheme was benefiting the people of Canberra.
"I believe it is achieving its purpose but it is important to continue the conversation with the community and explore ways that clubs can continue to make meaningful contributions to their communities," Mr Rees said.
"We support the good of the transparency of the good we do in the community."
The territory government is also set to detail a new strategy to reduce the number of gaming authorisations from 4985 to 4000 by 2020 in the first half of this year.
Mr Ramsay said the government was still considering how it would cut the number by nearly a quarter.
He said they were working closely with the clubs sector to devise the strategy.
"Canberra's local community clubs make a valuable and unique contribution to our city. Clubs and workers in the clubs industry have an important role to play in reducing gambling harm," Mr Ramsay said.
"The government is progressing a significant gambling harm reduction agenda and we will continue to work with clubs to support their ongoing viability while reducing gambling harm in the community."
