By 2000, clubs in NSW Australia collectively operated around 75,000 gaming machines or 8 per cent of high intensity machines worldwide. This study examines how these clubs have strategically managed the issue of problem gambling. Stage One traces the development of machine gambling in these not-for-profit venues and explains how increased commercialisation diminished their social contract and exacerbated problem gambling. Stage Two analyses how other factors also fuelled the emergence of problem gambling as a significant social issue. Stage Three considers the relevance of theoretical and applied models of social responsibility to NSW clubs in addressing problem gambling. The fourth and fifth stages draw on interviews, case studies and a survey to assess how NSW clubs interpreted their social responsibilities in gambling by the late 1990s, while Stage Six assesses their congruence with stakeholder expectations. The seventh stage considers implications of key developments during the late 1990s which saw the clubs' stance evolve from reluctant acceptance to pragmatic involvement when faced with government inquiries and responsible gambling legislation.