The Victorian Commission for Gambling Regulation has struck down Club Italia's application to boost its 38 machines to 60, citing concern about Brimbank's already alarming gambling rates.

The club had appealed to the VCGR for permission to install the extra machines following a refusal by Brimbank Council in April.

Despite this refusal the club bid for the further machine entitlements in a statewide auction last May, but the latest knockback dashes its hopes of installing the extra machines.

VCGR figures show Brimbank pokie machine players are among the highest spenders in the state, ranking third out of 31 metropolitan municipalities.

Last financial year, Brimbank's 953 electronic gaming machines collected $134.9million - almost $370,000 a day.

During this period ISIS Primary Care's Gambler's Help Western provided counselling to 410 clients.

A Monash University study estimates 2.3per cent of Brimbank's adult population are addicted to electronic gaming machines.

Council figures show Brimbank residents have a significantly lower income and higher unemployment rate than the Melbourne average, yet annual gaming expenditure is $1002 per adult - 54 per cent higher than the state average.

"These characteristics indicate that residents of the Brimbank region are more likely to experience financial hardship and are therefore more susceptible to issues with problem gambling," the council's VCGR submission stated.

Club Italia was hoping the extra 22 machines would help fund significant upgrades.

A socio-economic analysis submitted to the hearing suggested the club would struggle to survive financially without the extra machines, but sworn evidence from former general manager Charles D'Abico downplayed this.

He said the club was "not in dire straits, but obviously, you know, we would hope the application would help to make the club more secure".

VCGR figures show expenditure on Club Italia gaming machines was $3,726,235 in 2009-10, down slightly from $3,934,316 in 2008-09.

The club contributed $153,000 in cash to the community in 2009, with a further $54,000 provided to 19 community organisations through in-kind donations and discounts.

Council chairman Peter Lewinsky said he was thrilled with the decision.

"[It] is in line with our efforts to stem the negative impact of problem gambling in Brimbank, a municipality that can least afford it," he said.

"We were very thorough and deliberate in our consideration of this matter and we are pleased that our very genuine concerns have been reinforced by this decision."