Once the grant money was received, Keating dishonestly accounted for the way in which it was spent.
The clubs received a combined total of $122,000 in fraudulently obtained grants, of which $41,917.50 remain unaccounted for.
Keating used $14,530.67 of the grant funding for his own personal benefit, however, because of existing significant debts, he was not ordered to make any repayments.
The DIA's director for gambling compliance, Gareth Bostock, said that non-casino gaming machines raise more than $250 million a year for the community.
"It is fundamental to the integrity of the grants process that documents supplied to gambling trusts are true and correct," Mr Bostock said.
"The misappropriation of funds is a serious offence and in effect is a crime against the community because grant funding is taken away from its intended community purpose."
Judge Arthur Tompkins considered the loss to other potential grant recipients was particularly problematic, as was the sheer length of time, and the relative sophistication, of Keating's fraudulent activities.
Special conditions were imposed on Keating to prevent him taking on any work, volunteering, or associating with sports or social clubs without permission from the probation service.
