Clubs have hit the jackpot, with the State Government caving in to industry pressure and removing the cap on poker machines in clubs.

But hotels are out of luck.

In effect, the long-awaited overhaul of the gaming machine legislation means hotels like the Bull & Bush at Baulkham Hills, the Castle Hill Tavern or Mean Fiddler at Rouse Hill can't set up any more poker machines.

They're allowed a maximum of 30 pokies each.

Hotels had called for the ceiling to rise to 40.

Technically, clubs such as the Baulkham Hills Bowling Club, Castle Hill RSL and Dural Country Club have had their caps lifted beyond the existing 450-machine limit,

The only club in the region with 450 machines is the Castle Hill RSL, just completing an extensive refurbishment.

``Clubs are getting a far better run than the hotels,'' said Hillside Hotel's spokeswoman, Jessica Spilker. ``Obviously this is a huge windfall for RSL clubs.

``The Castle Hill RSL Club could potentially turn out bigger than the casino, with no limit on the number of pokies.

``They already have 450 machines and can lift to whatever they can accommodate.''

Comment was sought from the club, but it was not forthcoming.

Insiders say the unlimited cap for clubs could be the death knell for small clubs.

In the past 13 years, 106 clubs have merged and 109 closed.

Craig Fantom, the manager of the Galston Club, said the new regulations would not have a big impact on most clubs in the Hills.

``We've only got 50 pokies, though we could have 450.''

Baulkham Hills Sports Club manager Michael Clancy said $11 million in renovations spelled confidence for the future.

``Clubs give money back to the community, in donations and fundings, unlike hotelliers whose money goes into their back pockets.''

The sports club has 71 poker machines and may expand to 90, though Mr Clancy said ``our gaming floor is pretty much limited''.

The Baulkham Hills Bowling Club manager, Glen Evans, said there would be no changes for his venue, now carrying 73 pokies.