Under the deal, Tote's new sports betting business Betasport has contributed a cash contribution for naming rights to the New Norfolk Football Club.

On top of this, the football club will receive a payment for every member who signs up to Betasport as well as a percentage of every dollar spent by its members with the sports betting business.

Lyons Greens MHA Tim Morris said he did not have a problem with Betasport sponsoring the club but said the incentives put the club in a conflict between its financial needs and its members.

"The clear message from Tote through this sponsorship that will not doubt be put out to the members is `gamble all your money away and make the club rich'," Mr Morris said.

"Tote is going to be the big winner in this, the club's just going to get a little on the side at the expense of their own club members."

However, Tote chief executive Chris Coleman said payments to the football club would be capped, describing the sponsorship was about "building our brand".

Mr Coleman would not say how much the cap was, but said it was a "modest amount".

"It's attractive to a small organisation but it is a modest amount," he said.

"By no means and by any measure of this sponsorship arrangement could this be considered a money-making venture for the New Norfolk Football Club - it is just too modest for that to be the case.

"It is a way of rewarding the football club community who are supporting us rather than necessarily supporting our competitors."

Mr Coleman said he would be ensuring that there were no practices in place to encourage people to be gambling.

"We'll be talking to the club and wanting to know how they intend to promote the arrangements," he said.

Club president Margaret Gaby yesterday said the club was not reliant on the money to be earned through the incentives.

Mr Coleman said there were no similar sponsorship arrangements with any other clubs.