Banning smoking in clubs and pubs has cleared the air but almost 12 months after its introduction by the state government, also has forced many establishments to drastically review their practices to ensure patronage and profit is maintained.

The latest figures released by the NSW Office of Liquor, Gaming and Racing, between July last year, when the smoking ban was implemented, and February, show that turnover from poker machines fell by 11.4 per cent in pubs and by 7.7 per cent in clubs.

Clubs NSW has warned of serious consequences for businesses facing the reality of plummeting turnover as a result of new smoking laws, an increase in gaming tax, rising interest rates and crippling petrol prices.

But the state government says it is the perfect opportunity for pubs and clubs to embrace the change and introduce innovative programs and services to encourage new patrons, particularly those who enjoy a smoke-free environment.

It is that advice it seems, that has helped local venues ease the profit pain by ensuring the services they offer, help encourage the attendance of new patrons and continue to satisfy the needs of existing users.

The chief executive of the Australian Hotels Association, Sally Fielke, said while there had been a drop in poker machine use, there had been a reported increase in food sales.

For management at The Westport Club, it is a commitment to the local community that drives their determination to overcome any financial pressure imposed by increases in poker machine tax and smoking bans.

Community services manager John Millard, who oversees the community contributions made by both the Mingara and Westport clubs, said the state government needed to consider just how crucial clubs were to the social fabric of smaller, regional communities.

"Every club has been affected in some way by these changes ? there are some who have experienced up to a 20 to 30 per cent decrease in profits," Mr Millard said.

"The smoking ban has affected gaming people which affects profits. They are expecting up to 300 clubs statewide to go to the wall this year. You can't disregard that, in the last 12 months, New South Wales clubs gave back more than $900 million to community and sporting clubs.

"Clubs are born and bred in a community and they share that spirit. Our mission is to make a significant contribution to the quality of community life."

The Westport Club has revised its floorplan to combat the expected impacts of a ban on indoor smoking. It built a new outdoor, all-weather smoking area, complete with poker machines to ensure smoking patrons were not excluded from club activities.

Inside, the club remains smoke-free, ensuring non-smoking patrons can fully enjoy their club experience.

In the last 12 months, the club has contributed up to $50,000 toward its internal sporting and social groups, as well as community cricket, netball, soccer, rugby union and rugby league associations, the Salvation Army, Wesley Mission and the Westpac Rescue Helicopter.

"The gaming tax, at 39 per cent of turnover, for everyone is pretty heavy and the state government should look at pulling that back a bit," Mr Millard added.

"You really have to feel for the smaller bowling and golf clubs ? these are the meeting places for our community, a place to have a cheap meal or an outing."

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