A fund to help Canberra's clubs cut poker machines will be put on hold for two years while an independent inquiry examines the future of the sector. The diversification fund tax will also be stopped, saving Canberra's clubs about $2 million over the two-year pause and each club an average of about $2200 a month. The fund is financed by clubs which are required to contribute $20 a month for the first 99 poker machine licences they hold and $30 for each additional machine authorisation. Gaming Minister Marisa Paterson said the government was taking a proactive step towards considering alternative ways to support the diversification of the clubs sector. "As we progress major reform to address gambling harm this term, the government is committed to supporting clubs to diversify, as we recognise the vital role they play in the social life of many Canberrans," Dr Paterson said. Dr Paterson will on Wednesday introduce a bill to the Legislative Assembly to suspend the operation of the scheme, which was established in 2019. The bill, if passed, would suspend incoming and outgoing payments to the fund. The inquiry into the future of the club sector was a bipartisan commitment at the 2024 ACT election, and the government said it would provide advice on the development and implementation of a comprehensive club sector transition plan. The fund, established under Labor's then gaming minister Gordon Ramsay, was a recommendation of Neville Stevens' 2018 analysis of ACT club industry diversification support. "The introduction of a diversification support fund financed in part by industry through a charge on each gaming machine authorisation held would provide both an incentive not to retain unused authorisations and provide ongoing funding to assist clubs to improve their operations and to develop diversification strategies," Mr Stevens' report said. Dr Paterson in February told an Assembly inquiry: "As part of the inquiry into the club sector, understanding the role that this fund may have in the future will become clearer following that inquiry." Two clubs shared in $450,000 from the most recent round of funding from the diversification fund. The Belconnen Soccer Club was awarded $250,000 for renovations to an outdoor functions area and the Canberra Tradesman's Union Club will receive $200,000 towards the development of an environmental, social, and governance strategy for a development project. Belconnen Soccer Club chief executive Suzy Berry said the grant would improve the club's facilities and allow it to host more events and serve as a meeting place for people of all ages. "We are grateful for the ongoing support of the ACT government, which is helping us build a sustainable future for the club and our members," Ms Berry said. Labor promised before the 2024 election to slash the number of poker machines in Canberra by nearly 2800 over the next two decades, and fast-track the introduction of cashless gaming in the city's clubs in a bid to reduce gambling harm. A bitter political dispute defined the end of the last term as Greens leader Shane Rattenbury, the then gaming minister, sought to introduce a centralised monitoring system for poker machines, which Labor argued was expensive and did little to reduce gambling harm.