Australia's licensed clubs have offered to plug the childcare shortfall in exchange for tax exemptions.
In a submission to the Productivity Commission childcare inquiry, Clubs Australia boss Anthony Ball said licensed clubs could come to the rescue.
"Not-for-profit clubs are well positioned to deliver affordable access to child care," he said.
Its NSW branch commissioned a report that claimed a third of 4000 clubs would be keen to diversify into childcare services if they could get income tax exemptions on poker machine profits.
Anti-pokies campaigner Andrew Wilkie is appalled by the idea.
"The poker machine industry's interest in now running childcare centres surely must be some kind of sick joke," the independent Tasmanian MP said.
