A review into where NSW clubs are spending grant money is under way as critics say the much-maligned multibillion dollar scheme should be dumped.
The government says the release of data is needed to determine whether the controversial program should continue.
The ClubGRANTS scheme, set up in 1998, allows clubs to reduce the amount they pay on gambling taxes if a proportion of their profits from poker machines goes to a community cause.
But recently released data shows the biggest beneficiaries of the scheme are often the clubs or their subsidiaries.
In the past financial year, Canterbury Leagues Club gave almost $4.5 million to the Bulldogs Rugby League club, part of the millions of dollars handed from the grants to professional NRL sides.
A $1.7 million donation to the Brighton Lakes Recreation & Golf Club was given by the club to itself.
Castle Hill RSL also gave $1.3 million to the Lynwood Golf and Country Club, in which it is a part-owner.
The grants can be used for club sporting facilities and other core activities, although a proportion of the money must be set aside for community welfare-related services.
ClubsNSW, the industry's chief lobby group, said clubs had gone "above and beyond" by donating $121 million to community organisations in 2022/23.
That included $50 million above the amount required under the ClubGRANTS scheme, the organisation said.
"Not-for-profit NSW clubs were established to support a variety of core purposes — from propagating the game of rugby league, golf or lawn bowls, to assisting war veterans, or uniting members of a particular ethnic or religious group," they said.
"Leagues clubs have been supporting the propagation of rugby league since the 1950s, but it is important to note that clubs do not receive a rebate for all donations to the game."
Of the more than $14 million NSW clubs donated to NRL clubs last year, just around half was eligible for a rebate, according to the spokesperson.
Greens MP Cate Faehrmann questioned the oversight of what could be claimed as a grant.
"The whole ClubGRANTS scheme is a massive rort," she said on Tuesday, accusing the government of hiding behind a review that was light on detail.
"We have no idea when the review will be complete and I have little faith that the ClubGRANTS scheme will be substantially overhauled."
The review is being conducted by Liquor & Gaming NSW in consultation with the Cabinet Office and Treasury.
It will examine whether the grants scheme provides benefits to the public, if the tax concession offers value for money and whether there was a better system for funding community programs.
Ms Faehrmann said the $121 million paid last financial year equated to less than six days in poker machine losses and the grants scheme should be axed.
"The cost to local communities that gambling addiction causes is far more than the piddly amounts given by clubs in the form of grants," she said.
More than 80,000 poker machines operate in NSW, generating profits in excess of $8 billion in the year to June.
The government said the scheme, which has not been reviewed for more than 10 years, would deliver confidence to the community in how grants are delivered.
ClubsNSW said more than 13,000 donations had been made under the scheme over the 12 months until August 31.
