Review of the Registered Clubs Industry in NSW - Clubs NSW

Executive Summary
IPART examined the types of social contribution that clubs make, and clubs’
contribution to employment and economic opportunities. However, other businesses
also provide similar services: the hospitality industry provides bar and food services,
private golf clubs provide golf courses, councils provide swimming pools, sporting
grounds and meeting facilities and of course other industries contribute to
employment and economic opportunities. Therefore, as a means of assessing the
difference that clubs make to social well-being in NSW, IPART compared the
provision of sporting facilities and other community services in NSW with other
states where clubs have historically been much less significant. IPART found that
clubs in NSW have a small positive impact on participation rates in sports, make
significant contributions to charity compared to their interstate counterparts and are
utilised by many more social members than clubs in other states.
Clubs also provide considerable intangible social benefits that are impossible to
quantify but should not be ignored. These include the sense of belonging that some
club members feel and the greater social cohesion a community might experience as
a result of having a club where people can meet and mix.
There are also social costs associated with some of the activities of clubs, chiefly from
problem gambling and irresponsible consumption of alcohol. IPART reviewed
studies of interstate gambling expenditure and problem gambling rates to help it
assess what impact, if any, clubs have on gambling and problem gambling rates. It
found that rates of problem gambling and per capita expenditure on gambling are
slightly higher in NSW but still comparable with those in states where clubs do not
operate gaming machines. IPART concluded that clubs do not significantly affect the
total amount of gambling in NSW, but may influence the form of gambling and
where it occurs.
On balance, IPART concluded that the industry’s social contribution is positive. On
this basis, it considers that it is appropriate that the NSW Government provide
support to the industry, through the kinds of initiatives recommended by this
review, to help ensure that it remains financially viable so that clubs can continue to
contribute to positive social outcomes in the state.
Of course, the fortunes of individual clubs are likely to wax and wane over time.
IPART does not consider it appropriate or realistic to expect that all existing clubs
will survive and flourish over the coming 10 to 15 years. However, it has identified a
range of steps that can be taken to enhance the clubs industry’s financial viability.
Understanding clubs’ social contributions
The terms of reference asked IPART to measure the value of clubs’ contribution to
social infrastructure (not to undertake a cost-benefit analysis of clubs’ social
contribution). IPART considered various methodologies and decided that a
calculation based on the sum of clubs’ direct cash and in-kind contributions was the
most appropriate method. IPART undertook a calculation based on data from a
survey conducted by the Allen Consulting Group on behalf of ClubsNSW and
2 IPART Review of the Registered Clubs Industry in NSW