Some of New South Wales' most profitable gaming venues — including clubs with hundreds of poker machines — are among hundreds of pubs, hotels and clubs quietly collecting millions of dollars in liquor licence fee discounts under the Minns government's flagship nightlife reforms, in exchange for hosting live music performances that critics say amount to little more than background entertainment for gamblers.

The reforms, billed as reversing the cultural damage inflicted by the 2014 lockout laws, have been running since 2023 and carry a total price tag of $150 million. At their core is a business incentive scheme that offers venues an 80 per cent discount on annual liquor licence fees and two extra hours of trading on nights they host live acts — provided they put on at least 10 gigs a month in metropolitan areas, or 104 annually in regional areas.

The scale of gaming venues accessing the scheme is significant. According to data from budget estimates, 59 per cent of the 645 venues using the live music incentive had poker machines as of April this year. Hotels make up the largest share, with 304 venues enrolled, alongside 79 clubs.

Pokie venues dominate the live music incentive scheme

Campbelltown Catholic Club — one of the state's most profitable gaming venues, with 445 poker machines — is among those participating. On a recent Thursday evening, a country artist performed covers to a seated crowd in the members' lounge, on a stage roughly the size of six gaming machines.

The club's chief executive said the venue had been providing free entertainment to the local community for decades. "Ensuring the local community enjoys a vibrant and thriving night-time economy is a fundamental part of the role our club plays," he said, adding that the club welcomed any government initiatives that supported that effort.

Under the 2026 Annual Liquor Licence Fee program, hotels have collectively saved more than $1.5 million in fees as of April, while clubs saved nearly $400,000. In total, the government has spent $7.3 million since 2021 subsidising the licence fee discounts — money characterised by the Arts, Music and Night-time Economy Minister's office as foregone revenue from Liquor and Gaming NSW fees, with $2.6 million spent under the 2026 program alone.

Musicians say they're singing for their supper in pokies corners

For working musicians, the reality of performing under the scheme can be a far cry from a revitalised live music scene. Musician Adam Ventoura told a parliamentary inquiry in June that he regularly performs covers in the back corners of gaming venues for around $300 a gig, because the work is reliable and the pay is guaranteed.

"You're put in the corner, nobody really cares, and you're just there … pick up a guitar, and we go and sing for our supper," Ventoura told the inquiry. "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."

The inquiry, held in June, heard broader criticism that the reforms were funnelling public benefits toward powerful commercial operators rather than the grassroots arts and cultural sectors.

Critics say grassroots culture is being sidelined

A scathing independent assessment released in April found that the push to revive Sydney's nightlife reputation had come at a direct cost to grassroots arts and cultural sectors. Critics argue the government is backing established commercial venues over smaller, independent operators who form the backbone of the city's creative scene.

Arts, Music and Night-time Economy Minister John Graham — the architect of the reforms — has defended the approach, previously stating his view that "pokies did kill pub rock" and framing the incentives as a necessary lever to reverse that damage. The government has pointed to what it describes as a quadrupling of live gigs across the state since the reforms were introduced as evidence of success.

Whether that growth represents a genuine cultural revival or a subsidised windfall for the gaming industry is a question the debate around Labor's nightlife agenda shows no sign of resolving soon. Debates around gambling venues and regulatory accountability continue to test the boundaries of how governments balance commercial and community interests across NSW.