I admit to not being entirely sure what "Sports Clubs" are over east though or why they need propping up by gambling. In any case, it works fine here.
You CAN get a permit for a few bits of "gambling" that is mostly only for "sports clubs" but it's very VERY restricted, and mostly like actual games with people like Poker, Two Up, etc. It's not really a problem in nearly the same way, and no machines: https://sportscommunity.com.au/club-member/wa-gambling/