The trust that runs Rotorua's Lakeside concerts is one of many local organisations lobbying the Government about a proposed law change affecting pokies proceeds.
Rotorua Lakeside Concert Charitable Trust chairman Ian Edward said in a written submission to Parliament the concert relied on funding from poker machines.
"While we have been most fortunate to receive a significant donation annually from our Platinum Sponsor, the Rotorua Energy Charitable Trust, we are absolutely dependent on the generosity of grants made available from the region's gaming and charitable trusts, to maintain this iconic event."
The New Zealand Rugby Union has recently warned that amateur rugby clubs will buckle or be forced to raise players' fees by 500 per cent if gambling proceeds are cut under the proposed law change.
Waiariki MP Te Ururoa Flavell's bill would limit the way pokie proceeds could be distributed and phase out the "pokie trusts" which managed gambling money. He wants to reduce problem gambling, which disproportionately hurts Maori and Pacific communities.
From March 31 to June 30, $5,109,394.70 was spent at gaming machines in the Rotorua district.
Mr Edward said Rotorua was a "low socio-economic community where most citizens lack the financial resources to travel to a major centre to experience a family show of our quality".
While not opposed to the bill in its entirety, he strongly recommended that gaming funds not be distributed via local authorities as the bill proposed.
"The potential for politicising issues is too great."
Rugby union chief Steve Tew said 22 per cent of rugby clubs' funding came from gaming machine money, and removing this lifeline would seriously undermine grassroots sport. Clubs could no longer rely on "cake stalls and sausage sizzles".
The bill has attracted 4718 submissions from concerned individuals, community groups and recipients of the pokies profits.
A submission on the bill from Esther Mitchell said: "I am in favour of this bill, because I know how addictive gambling can be. I've seen other people waste their life and money on pokie machines. If we could get rid of pokie machines altogether that would be even better, and this bill would help towards that."
Punters lose $2.3 million every day to non-casino pokies.
About $856 million was spent at non-casino gaming machines in the 2010-11 financial year, according to the Department of Internal Affairs.
Mr Flavell has said he has no intention of stamping out gambling, but wants to make the distribution of proceeds fairer.
One of his main concerns was that pokies created a transfer of wealth from poor areas to wealthy ones.
The ratio of pokies to people in poorer regions is 1 to 75 compared with 1 to 425 in richer areas. To combat this, the bill would ensure that 80 per cent of gambling proceeds be returned to the region from which the money was lost.
National sporting groups criticised the proposal, saying it prevented them from centralising their funds and redistributing it nationwide.
Mr Flavell said the leftover 20 per cent which were not invested in the immediate area could be used for nationwide distribution.
The Commerce Committee is hearing submissions on the bill and is due to report next month.
DISTRIBUTION OF POKIES' FUNDS
Community grants - 40 per cent.
Trust admin expenses - 35 per cent.
Taxes - 23 per cent.
Problem gambling levies - 2 per cent.
- Source: Green Party