Eastern Victoria MLC Peter Hall said he and Nationals leader Peter Ryan had negotiated with the State Government to win significant concessions with the Gambling Regulation Amendment (Licensing) Bill 2009 to protect smaller clubs.

According to Mr Hall, the government's original plan would have resulted in small clubs competing in an auction process for gaming entitlements and machines against industry giants.

However under the changes, smaller clubs will be able to participate in the auction, but will have the opportunity to purchase their existing entitlements ahead of the bidding process at a fixed price.

"Community clubs would have struggled to compete if the amendments weren't made,'' Mr Hall said.

"Many of Gippsland's smaller clubs would have suffered financially.

"I believe these amendments will provide these clubs with the certainty needed to continue to operate and support local community needs.

"Under this arrangement they will be able to make sound business decisions without the threat of losing valuable income streams to the big players in the gaming industry.''

Mr Hall said the government had agreed to offer clubs the chance to purchase 100 per cent of their current machines to a maximum of 40 machines.

He said the purchase price would be linked to the average machine revenue at each venue.

In a further win for clubs, the government also agreed to reduce the first two payments for machine entitlements from 10 per cent to five per cent.

Maffra Community Sports Club manager Kevin McQuillen said the amendments were a relief for the club.

"We're really happy,'' he said.

"We're a little club here and we've been doing renovations, so trying to pay for that and having to worry about bidding for machines would have been difficult.

"We were caught in a web of uncertainty.''

Mr McQuillen said local sporting clubs would also have suffered financially if the club lost its gaming machines.

"It would have been a blow to Maffra.

"From the pictures that were painted, we could have lost our machines; it was a possibility.

"This legislation will protect our future.''

Sporting Legends chief executive Ken Bailey also said he was relieved the amendments were made.

"It's excellent for small clubs in country areas. It guarantees they will survive.

"The competitive tendering process would have destroyed smaller clubs.''