The ACT government is aiming for the number of poker machines in territory clubs to be 3500 by 2024, as outlined in the Labor-Greens power-sharing agreement.

There are 3611 electronic gaming machines in operation across across Canberra but there are 3863 machine authorisations. The government's target is to get the authorisations down to 3500.

Minister for Gaming Shane Rattenbury said the government would need to take into consideration the impact of the COVID lockdowns as policies are developed to curb problem gambling.

Mr Rattenbury said deliberate policy measures would be needed over the coming years to meet the 3500 target. He also said he would like to explore options for some clubs to go pokie-free.

But COVID has hit the pockets of clubs and this will likely affect the approach the government will take in its work to reduce poker machines.

"There's no doubt the pandemic has been an economic setback for the clubs, they're in that hospitality space and we've seen the hospitality sector has been one of the hardest hit," Mr Rattenbury said.

"So the clubs have done a great job across the pandemic, but it has had an impact on them and I think that is something we need the government to take into account as we think about these transition plans."

Mr Rattenbury's comments came as he announced the next round of funding for the ACT government's diversification fund.

The fund, developed in 2019, is financed by clubs which are required to contribute $20 a month for the first 99 poker machine licences they hold. This rises to $30 a month for each machine above this number.

Clubs can apply for money from the fund to use for projects that help diversify clubs revenue streams away from poker machines.

There are two tiers of funding that clubs can access. The first tier is for $25,000 and clubs re able to apply for this year round. In the second tier clubs can access up to $250,000 in grants. Applications for the second tier open at least once a year.

Mr Rattenbury announced on Monday that six community clubs received a total of almost $1 million as part of the second tier funding.

There was $943,000 given to six clubs: the Spanish Australian Club, Belconnen Soccer Club, Harmonie German Club, Canberra Highland and Burns Club, Gungahlin Lakes Golf and Community Club, and the Belconnen Magpies Sports Club.

The clubs will use the money for a variety of reasons, including solar installation, childcare centre development, renovations and to install air conditioning.

The Spanish Australian Club will use the funding for kitchen renovations and upgrades to enable the club to offer food.

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The club's treasurer Chris Lander said the kitchen would allow the club to broaden its income capacity.

"The funding received by the Spanish Australian Club will be used to renovate and upgrade the existing kitchen to a modern commercial kitchen which will enable the Spanish Australian Club to offer food services which will accompany events hosted at the club," he said.

Mr Lander said revenue from poker machines still played a key role. He said if the club were to get rid of machines customers would simply go to larger clubs to use machines.

But he said if other revenue streams could be developed there was a possibility in the future that the club could get rid of poker machines.

"It would be a long time away but if we found revenue streams but if we've found revenue streams that can allow the survival, the sustainability of the club to remain, obviously, there would be less reliance on that revenue stream," Mr Lander said.

In 2017 the Belconnen Magpies Club in Kippax closed their licensed gaming premises, after 47 years, and spent considerable funds converting the site for suitable use as a medical centre.

General manager Paul Netting said the additional funding had been used to upgrade the Ochre Medical Centre Kippax by improving accessibility through the installation of a lift to provide wheelchair access to the dentist.

"We have also installed air conditioning at the premises to provide greater comfort for patients and staff," he said.

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