Millions of dollars have been extracted by the NSW government from poker machine profits in Sydney's most disadvantaged council area, Fairfield, for a statewide infrastructure fund, yet none of it has been spent on facilities there.

The situation has prompted Fairfield mayor Frank Carbone to declare that the Berejiklian government is "taking funds from areas of high need and starving our community of essential infrastructure".

Under the Club Grants Category 3 scheme, 0.4 per cent of a registered club's poker machine profits over $1 million is taken for a state government-administered infrastructure fund.

Councils and organisations bid for grants to fund sporting, health or community infrastructure and decisions are made by the racing minister, currently Paul Toole.