Hamilton mayor Andrew King is accused of threatening to pull council funding for three organisations if they backed SkyCity's plans to increase the number of pokies in its Hamilton casino.

King denies making the ultimatum.

But he confirmed telling Hamilton Waikato Tourism, Chiefs Rugby Club and Northern Districts Cricket Association that going against Hamilton City Council's position "may be an issue for future funding decisions".

SkyCity has notified the Gambling Commission about the mayor's alleged threats and the Department of Internal Affairs says the council's chief executive Richard Briggs is aware of the issue.

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But Briggs told the Herald on