Sydney’s top poker machine venues benefit from large liquor fee discounts under new nightlife reforms

At 8.30pm on a Thursday at one of the state’s most profitable gaming venues, country artist Craig Woodward sings covers on a stage in the corner of the members’ lounge before dozens of seated audience members.

The artists’ stage at Campbelltown Catholic Club is about the size of six gaming machines. The venue has 445.

It’s one of the hundreds of Sydney pokie clubs, hotels and pubs tapping millions in discounts on liquor licensing fees and receiving extra trading hours in exchange for offering live music under Labor’s so-called vibrancy reforms.

Critics argue the Minns government is backing powerful commercial interests over the grassroots arts and cultural sectors, following a scathing April assessment that found the push to revive Sydney’s night-time reputation came at a direct cost to those sectors.

Billed as reversing the damage done to the city’s nightlife and live music scene following the 2014 lockout laws, the $150 million reforms, since being enacted in 2023, have cut red tape and enabled councils to designate nightlife areas. But its keystone is the business incentives.

Live music and gaming venues can secure an 80 per cent discount on annual liquor licence fees in return for putting on live acts and two extra hours of liquor trading on gig nights, which has led Labor to claim it has quadrupled the number of gigs in the state since the reforms were introduced.

Clubs, hotels, small bars, on-premises and wholesale licence holders can become live music venues so long as they host 10 gigs a month, while regional venues must hold 104 annually. Metropolitan venues must have a dedicated live music performance space, while all venues are required to record each gig hosted.

Brainchild of Arts, Music and Night-time Economy Minister John Graham, who in a September interview with this masthead said, “my view is pokies did kill pub rock”, the incentives came under fire in a June live music parliamentary inquiry.

Musician Adam Ventoura said he’d often sing covers shoved into the back corner of “pokies pubs” for $300 because the gigs are guaranteed to pay.

“I’ve actually ... played in these places. You’re put in the corner, nobody really cares, and you’re just there … [to] pick up a guitar, and we go and sing for our supper. We prefer to sing our own songs because we have been making our own songs forever, but we’ll go sing Brown-Eyed Girl for somebody because they are paying the money,” Ventoura told the inquiry.

Labor has spent $7.3 million since 2021 subsidising the liquor licence fees discount for venues, it revealed in its latest budget estimates response. Under the 2026 Annual Liquor Licence Fee program, it has spent $2.6 million.

Data from budget estimates reveal 59 per cent of the 645 venues accessing the live music incentive had gaming machines as of April this year. Hotels comprise the largest share, with 304 venues using the scheme, while 79 clubs do.

Under the 2026 Annual Liquor Licence Fee program, hotels saved more than $1.5 million in fees as of April. For clubs, it was nearly $400,000.

Graham’s office said the $7.3 million was foregone revenue from Liquor and Gaming NSW licence fees.

Campbelltown Catholic Club’s chief executive Michael Lavorato said the venue had provided free entertainment for decades.

“Ensuring the local community enjoys a vibrant and thriving night-time economy is a fundamental part of the role our club plays,” Lavorato said. “We welcome any government initiatives that help to bolster that effort.”

Wentworthville Leagues Club, Canterbury League Club, Dooleys Lidcombe Catholic Club and Dee Why RSL are among the wealthiest clubs accessing the reforms. Meanwhile, live music hubs, including Mary’s Underground and the Divine Playhouse in the CBD, Blah Bar in Lismore, Newtown’s Moshpit and Marrickville’s Lazy Thinking have shut this year.

NSW Greens arts, music and night-time economy spokesperson Cate Faehrmann said the foregone licence fees were another “kick in the guts for struggling arts organisations who have either already closed their doors, or are close to it because the government says there’s not enough money in the budget to support them”.

Darlinghurst’s Australian Design Centre – the state’s only dedicated craft and design hub – was forced to shut weeks shy of its 62nd birthday after losing federal funding in 2025 and failing to secure state support to bridge its annual shortfall.

“Labor likes to talk a big game when it comes to its vibrancy reforms, but the numbers show that most of the venues benefiting from them are wealthy clubs and pubs with poker machines,” Faehrmann said.

“It’s outrageous that the government is handing public money to some of the wealthiest gambling venues in the state while independent music and cultural venues fight for survival.”

Graham acknowledged the city had experienced a spate of live music venue closures, adding that without the vibrancy reforms, “there would be less jobs for musicians, less music for fans”.

Hotels and clubs overwhelmingly comprise the majority of venues that receive the live music incentive and trade past midnight. Only 16 of 461 venues that trade past midnight are small bars, which don’t allow pokies.

After 3am, only one small bar using the incentives trades, but 204 hotels and 83 clubs do. After 5am, it’s 82 clubs and 88 hotels.

A spokeswoman for Clubs NSW said club venues had long supported live music, particularly in suburban and regional communities.

“Independent research by Urbis estimates that NSW clubs support approximately 106,100 community and live entertainment activities each year, providing performers with opportunities and communities with accessible local entertainment,” she said.

Last month, the government passed a separate new contemporary music bill that also incentivises venues to prioritise local, live music in response to this masthead’s reporting of musicians playing at pokies pubs. Now, venues that regularly host original live music will be tiered as “dedicated”, “significant” or “live music”.

“Dedicated” and “significant” venues will be eligible for programs, extended trading hours or government grants. “Live music” venues will still be able to access the vibrancy reforms.

“The problem was you couldn’t tell the difference between a pokie venue and a music venue or a venue that was just selling alcohol. They were all treated the same when liquor and gaming looked at it,” Graham said.

“The lockouts killed a wave of electronic music coming through small clubs, and now we’re using the liquor and planning system, and now the music bill, to turn that around and actually reward music venues.”

You have reached your maximum number of saved items.

Remove items from your saved list to add more.