The NSW Government has introduced a bill that seeks to amend the Electoral Funding Act 2018 to outlaw political donations from clubs that house gaming machines or are otherwise involved in wagering, betting or other gambling.
The proposed amendment to the Electoral Funding Act will extend the prohibited donors list to include registered clubs if the business undertaken by the club includes wagering, betting or other gambling, regardless of their profit-making status.
“Our bill closes a political loophole,” NSW Premier Chris Minns said. “It is common sense that, if other gambling entities are banned from making political donations, it should apply to all clubs.
“This bill is an important integrity measure to strengthening the political donation system in our state.”
Currently, the Electoral Funding Act 2018 makes it unlawful for a prohibited donor to make a political donation and for a person to accept a political donation made by a prohibited donor.
Prohibited donors include property developers, tobacco industry business entities and liquor or gambling industry business entities. It does not include peak bodies, such as Clubs NSW, with NSW Labor reporting a donation of $1000 in July last year and $5490 in June 2022 for State Campaign Reportable Donations.
The definition of “liquor or gambling industry business entity” in the Act applies to corporations engaged in business undertakings mainly concerned with the manufacture or sale of liquor products, or wagering, betting or other gambling, but only if it is for the ultimate purpose of making a profit.
Registered clubs that hold club licences are not currently included in this definition if they do not have the ultimate purpose of making a profit.
“This bill will ban political parties from accepting financial donations from clubs with gaming machines – it is another election commitment we are seeing through,” NSW Special Minister of State John Graham said.
“From January 16 this year, NSW Labor took action to not accept donations from clubs with gaming machines. This bill will extend that ban to every state political party.”