Amateur rugby clubs will buckle or be forced to bump up their fees by 500 per cent if gambling proceeds are cut under a proposed law change, the New Zealand Rugby Union says.
NZRU chief Steve Tew said 22 per cent of clubs' funding came from gaming machine money, and removing this lifeline would seriously undermine community sport.
He applauded the Maori Party's efforts to curb problem gambling but worried the harm to sport would outweigh the legislation's benefits.
Maori Party MP Te Ururoa Flavell's bill would limit the way pokie proceeds could be distributed and phase out the "pokie trusts" which managed gambling money.
Tawa Rugby Club chair Dave Banks told a select committee yesterday 35 to 40 per cent of his club's income came from gambling trusts, which paid for uniforms, training equipment and maintenance of club rooms.