The ACT government has announced a two-year pause on its Diversification and Sustainability Fund while an independent inquiry into the future of ACT’s club sector is conducted.
The fund, which was established in 2019, was designed to help clubs reduce their reliance on gaming revenue by supporting the development of non-gaming revenue streams.
“By suspending this fund, we are taking a proactive step towards considering different approaches to supporting diversification of the clubs sector,” Minister for Gaming Reform Marisa Paterson said.
“As we progress major reform to address gambling harm this term, the government is committed to supporting clubs to diversify, as we recognise the vital role, they play in the social life of many Canberrans.”
While the industry was not consulted on the decision to temporarily suspend the fund, the news has been welcomed by ClubsACT CEO Craig Shannon.
“We think this is a positive development by government. Instead of the Diversification and Sustainability Support Fund, it’s more practical for Clubs to have access to, and utilise, their limited funds as part of their investment strategies without surrendering funds to government and having to apply for them back,” he told Club Management.
Shannon believes the fund was a “conceptually flawed model”. The fund is financed through taxes paid by clubs and redistributed as grants, which clubs must apply for.
“We don’t believe the fund ever achieved its real aspirations, as the grant amounts were never sufficient to allow significant investments in diversification projects. All the key stakeholders acknowledged these concerns in the last term of the Assembly,” he said.
In the most recent funding round, $450,000 was awarded to two clubs. The Belconnen Soccer Club will receive $250,000 for renovations to an outdoor functions area, while the Canberra Tradesman’s Union Club will receive $200,000 to support the development of an environmental, social, and governance strategy for a development project.
“This grant will not only improve our facilities but also enable us to host more events and strengthen our role as a meeting place for people of all ages,” Belconnen Soccer Club CEO Suzy Berry said.
The temporary suspension will be introduced under the Gaming Legislation Amendment Bill 2025.
Information-sharing provisions expanded
In addition, the Bill also introduces amendments to the Gambling and Racing Control Act 1999 to expand information-sharing provisions in relation to investigations conducted by the Gambling and Racing Commission.
The government said the information-sharing amendments will speak directly to the concerns raised by complainants and ensure going forward that they can be informed about the status of the progress of their complaints.
Club Management understands concerns about information-sharing emerged after the family of a man who had taken his own life were left without formal updates, after they filed a formal complaint about Canberra’s Hellenic Club to the Gambling and Racing Commission.
According to The Canberra Times, the family lodged a complaint to the Commission, alleging Canberra’s Hellenic Club breached gambling laws by allowing the man and his wife to withdraw illegal amounts of cash.
Following the complaint, the Commission issued the club with a $1.2 million fine after allegedly finding it breached gambling regulations more than 70 times.
The Hellenic Club appealed the fine to the ACT Civil and Administrative Tribunal (ACAT). It also asked the tribunal for permission to challenge the Commission’s disciplinary powers in the ACT Supreme Court.
However, the tribunal rejected this request, finding the Hellenic Club’s chances of persuading the Supreme Court to accept its arguments were “not strong” and that a referral would cause “significant” risk in delaying the tribunal proceedings.
The club’s appeal against the $1.2 million fine is still under consideration by ACAT.
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