How RSLs are reinventing themselves with no pokies, alcohol-lite Gen Z

Sixteen years ago, Coburg RSL was fighting for survival. Today, Melbourne’s oldest continually operating RSL is thriving, having reinvented itself as a volunteer-run community hub built around live music, events and craft beer.

Following a brief flirtation with gaming machines in the 1990s, the club, now approaching its 108th year, also proudly remains pokie-free.

Pokies have become synonymous with many larger RSLs, but Coburg is part of the majority in Victoria that operate without them. Of the state’s roughly 260 sub-branches, just over 50 have gaming machines, while more than 200 do not.

President Michael Pianta said Coburg nevertheless “punches above its weight”, opening five to six days a week and generates revenue through a regular program of live bands, dance nights, family events and weekly snooker and billiards.

“We’re not reliant on gambling revenue to survive, which is something we are collectively very proud of,” Mr Pianta told realcommercial.com.au. “We may not be as pristine as some of the very modern RSLs because we haven’t got their levels of revenue, but it also means we don’t have an obligation to gambling.”

According to a 2026 IBISWorld report, gambling remains the largest revenue stream for Australian social clubs, accounting for about 40%, or $6 billion, of annual revenue.

But with increased regulatory changes expected to constrain gaming revenue growth, the report found clubs diversifying into food, events and property are better positioned to grow non-gaming revenue and sustain profitability.

That need to diversify is reshaping the traditional RSL model.

Some, like Coburg, are building around live music and community events, while others are unlocking the value of substantial landholdings to pursue mixed-use developments, hotels and even retirement living.

Coburg RSL’s sub-branch president Michael Planta and senior vice president Darren Dwyer. Picture: Coburg RSL / Facebook

Mario Saia, managing director at HTL Corporate Advisory, said Australia was witnessing a significant evolution in the RSL’s 110-year journey.

“Where the primary focus was once to provide a place for local communities to meet, socialise and enjoy local hospitality, today, boards are increasingly thinking about how they can ensure their club not only remains relevant, but financially sustainable for the foreseeable future,” Mr Saia told realcommercial.com.au.

“But there is no one-size-fits-all model; the right strategy can depend on a club’s location, landholding, demographics, planning opportunities and what it’s actually trying to achieve.”

The diversification strategy

Landholding and development are emerging as key ways for clubs to diversify their business models, with long-held sites offering opportunities to generate new revenue and support future operations.

“Underlying property values of RSLs can be extremely significant,” said Mario Saia. “Many occupy sites that were acquired decades ago, when the surrounding suburbs looked very different. Today, those same sites can be in highly established locations with significant land value and development potential.”

HTL Property’s Mario Saia. Picture: HTL Property

Club Bondi Junction is a case in point. After years of financial struggles and dwindling membership, the club partnered with Capital Corporation to redevelop its prime Bronte Road site rather than sell up and disappear.

Completed in 2024, the $150 million mixed-use development delivered a new club, commercial retail space and luxury apartments, allowing the RSL to retain its presence in the heart of Bondi Junction. The club also retained three apartments as investments, while its commercial assets provide rental income and a new revenue stream.

“In some cases, the value of the real estate can be far greater than what you would appreciate by looking at the club purely as an operating business,” Mr Saia said.

Castle Hill RSL is taking diversification a step further. One of the most profitable clubs in Australia, it is using part of its substantial site to create a residential lifestyle community for over-55s. The approved development will deliver around 250 apartments and penthouses alongside the existing club, giving residents direct access to its dining, sport and wellness facilities.

Mr Saia pointed to Castle Hill as an example of a club pursuing a land use closely aligned with its existing role in the community.

“Seniors living is a logical fit because of the club’s established membership base and the natural relationship with a club that already provides social and community services,” he said. “It is not simply about finding another use for surplus land, but rather finding a use that complements the club’s existing proposition.”

Central Coast Leagues Club, meanwhile, is taking a broader approach to urban renewal. Its concept masterplan envisages transforming its Gosford site into a mixed-use precinct incorporating a new club, residential towers, a hotel and retail and commercial uses, alongside improved pedestrian connections and public spaces.

“This is a far more significant property strategy,” Mr Saia said, “where the club is effectively becoming part of a broader redevelopment of the precinct.”

Sydney’s Castle Hill RSL was significantly renovated and modernised in 2024. Picture: Castle Hill RSL / Facebook

Enhancing the offering

Penrith RSL offers a different model, investing in the existing venue rather than pursuing residential or mixed-use development. Its recently completed $35 million stage one redevelopment included expanded dining facilities, upgrades to the existing club and a new multi-purpose function centre.

Mr Saia said the strategy was about making the club “a stronger and more attractive destination for members and the broader community”.

For clubs undertaking major upgrades, remaining open during construction can maintain cash flow, although noise, parking and access disruptions can affect trading and the member experience.

“That temporary impact on earnings needs to be factored into how much debt the club takes on,” Mr Saia said.

“A successful development can strengthen the club financially, but the objective should be to use the property opportunity to support a sustainable club rather than simply pursue development for its own sake.”