Wests Group donated $1 million to its own National Rugby League club last financial year under a controversial state grants program offering tax breaks to licensed clubs.
The Newcastle Knights received $200,000 from each of Wests' five clubs at New Lambton, Cardiff, Nelson Bay, Mayfield and Newcastle West under the ClubGRANTS program.
Wests Group took over the Knights in 2017.
The scheme, set up 25 years ago, gives clubs a 1.85 per cent tax discount on poker machine profits over $1 million if they donate to projects, services and programs that benefit their community.
The program was designed to ensure clubs gave a proportion of their massive pokie revenue back to the community, but a ClubsNSW list of all grant recipients in 2022-23 shows many of the largest donations involved clubs donating money to themselves.
The Hunter's licensed clubs made $153 million net profit from poker machines in the year to May 31.
The Hunter clubs eligible for the ClubGRANTS scheme gave millions in gaming profits to dozens of sport and community organisations, including women's welfare charities, disability services, schools and health groups.
Wests Group clubs gave $315,000 to the Soul Hub (formerly Soul Cafe) charity, $30,000 to Cerebral Palsy Alliance and $35,000 to Lifeline among their more than $3 million in ClubGRANTS donations.
But few of the major recipients of club grants in the Hunter were charities.
Some Newcastle Rugby League clubs were beneficiaries.
Wests Group gave $300,000 to Wests Rosellas, Cessnock Leagues gave $35,000 under the program to the Cessnock Goannas, Maitland City Bowls, Sport and Rec Club gave $160,000 to Maitland Pickers and Belmont 16 Foot Sailing Club gave $50,000 to Lakes United.
Belmont 16 Footers also gave $765,000 to its sailing programs, and Toronto District Workers gave $797,000 to its affiliated Toronto Golf Club.
The Knights were the eighth largest grant recipient in NSW under the scheme.
Fellow NRL club the Bulldogs received the most at $4.8 million, South Sydney was second $2.2 million and the Roosters third at $1.8 million.
All the donations to NRL clubs were legal under the scheme.
The Ted Noffs Foundation, offering drug treatment for young people, received $525,450, Oakdene House Foundation gambling and alcohol addiction service $553,554, the Learning Links service for children with learning difficulties and disabilities $1,653,474 and children's medical flight service Little Wings $486,867.
NSW Council of Social Service withdrew from ClubGRANTS in 2021 after finding the "governance frameworks guiding the scheme fall short of community expectations".
Liquor & Gaming NSW is leading a government review of the program "to ensure government's standards for grant programs are being met".
The review's terms of reference say it will "determine whether the scheme provides cost-effective benefits to local communities, including whether the taxation arrangements are appropriate, whether the regulatory framework remains fit for purpose and whether the administration of the Scheme meets contemporary standards".
Clubs NSW said in a media statement on Monday that the state's licensed clubs gave $121 million under the scheme in the year to August 2023.
The industry group's chief executive, Rebecca Riant, said ClubGRANTS has distributed more than $1.5 billion in "community benefits" since 1998.
"ClubGRANTS is a fantastic program that drives support for community organisations and activities within a club's local area and support for the core purpose for which clubs were established," Ms Riant said.
"That investment makes participation in sport, recreation and other activities more accessible and affordable for hundreds of thousands of community members, from junior footballers and netballers through to veterans and retired bowlers and golfers," Ms Riant said.
The Newcastle Herald contacted Wests Group for comment.
