Waikato's Mystery Creek Events Centre is struggling to compete with the funding and incentives offered by the Hamilton City Council to lure events to the new $68.4 million Claudelands Events Centre.
But the council has defended partnering and sponsoring events, saying it is common practice.
The Mystery Creek centre's president, Lloyd Downing, said he had no problems with competition but did not think it was fair if ratepayers were subsidising events by up to $100,000.
The events centre, on Hamilton's outskirts, had lost several events to the new centre, including the Waikato/Bay of Plenty Magic netball matches, and was also aware of several other events in talks about moving to Claudelands.
"My understanding is there is a subsidy available to customers to go to Claudelands - how much I don't know - but it makes it very hard to compete.