It’s one of Australia's most famous traditions in clubs and pubs, a flutter on the races.

These days it’s not a winner for hospitality venues, it’s a cost, with the Sky Racing screens costing $1000 a month.

Hotels and club did receive commissions on turnover, the money gambled on by punters.

But this is all about to change and the tip is that smaller venues will take the biggest hit.

Tabcorp’s decision to alter its retail strategy and invest in the in-venue experience rather than paying widespread commissions to hotels and clubs is going to affect country venues.

The TAB won't be paying commissions anymore.

Pauleen Daniels from popular venue Narromine’s Royal Hotel says ‘’Its definitely not a financial winner for the pub but it does bring in lots of customers.’’

She said the pub would be looking into it further.

The nearby Courthouse Hotel also has people who come there to watch racing but say "It's very hard to promote because we have not got pay out terminals and the only way is to bet on your phone."

"Having the screens which cost the pub dearly also make it tough as electricity costs are high and it's expensive if they break down so it's cost negative," Manager Liza Beattie said.

"It can be anti-social when people are gambling on their phones."

The TAB's strategy driving betting on its App is for a new generation of punter but has won the cautious support of the CEOs of both Racing Queensland and Racing NSW.

Tabcorp announced last month that it would change the way it engages with venues, in a bid to better leverage its retail monopoly across most of Australia.

Interim Racing Queensland chief executive Lachlan Murray told the Australian Financial Review that the strategy, spearheaded by CEO Gillon McLachlan, made sense.

“Tabcorp must keep innovating because consumer preferences are changing.

"History will decide whether the venues are better off or not based on whether they’re able to get increased patronage and spend,” he said.

“What I’m interested in seeing is whether the advancements in retail offerings grow the wagering turnover pie because that’s when everyone wins.”

Peter V’landys also supports the initiative McLachlan has shown, despite the misgivings of the Australian Hotels Association.

“He is trying to eradicate that monopolistic attitude that Tabcorp has had and realises they’re in a very competitive market.

"He’s really trying to shake it up,” the Racing NSW CEO told the AFR.

The Australian Hotels Assocation CEO Stephen Ferguson says smaller clubs who bank on small commissions and rebates will be the big losers.