Secretary-manager Alan Shapley said this week that the Mollymook club would have "no chance of remaining open" if the scheme is introduced.

He believes many other clubs are in the same boat - all because of an "ill-considered and desperate move to form government".

Mr Shapley said the estimated cost of implementing the pre-commitment system - approximately $2.5 billion - would have a "catastrophic" impact on the club industry as a whole.

He said the estimated revenue fall for clubs could be as large as 25 per cent to 40 per cent.

Mr Shapley said this would have a devastating effect not only on the club industry but on the community as a whole.

He said all those organisations that rely on support from the compulsory and non-compulsory gaming tax would inevitably suffer.

Under the scheme, people would need to pre-commit to a daily spend limit before being able to play a gaming machine.

Mr Shapley fears that because the scheme only applies to gaming machines it will simply force people to alternate forms of gambling such as the racing industry, lotteries and the internet.

He also said gambling experts have indicated the system will never work because problem gamblers won't set realistic limits.

Australian clubs and pubs have launched a national campaign branding the proposed move as 'un-Australian'.

President of ClubsAustralia Peter Newell described the political deal between the Federal Government and Tasmanian independent Andrew Wilkie as 'shameful' .

He said those people who spend money on the pokies were "overwhelmingly responsible punters" who will now have to register for a licence even if they want to bet just a few dollars.

Mr Newell said the 'licence to punt' technology was untested and unsupported by many of Australia's leading problem gambling experts.

He said recreational punters would "understandably boycott any system" that tracks their gaming activities and treats them like problem gamblers.

Mr Newell warned that the nation's pubs and clubs would continue to fight the 'licence to punt' for as long as they need to.

"There is no end date for our campaign and if it needs to run until the next Federal election then so be it," he said last week.