There is concern that a massive rise in poker machine taxes will send many clubs in regional New South Wales broke.

David Costello from Clubs NSW says small clubs provide many sporting and community services to towns, and it would be sad to see them disappear.

Mr Costello says from September 1, some clubs will face additional taxes of up to 79 per cent.

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"We're seeing a change in the industry already, we're certainly seeing already an amount of devastation in the supplier industries having to cut their staff by up to one third," he said.

"Unfortunately the industry is in a state of panic and that panic has been caused by Mr Carr and Mr Egan."

Source: ABC News Online