The report commissioned by the Bracks Government compared gambling in Victoria and Western Australia.

It showed in 2002-03 Victoria had double the spending on gambling and 13 times more new clients attending gambling counselling than in WA.

The report also revealed gaming-related employment was lower than other industries, with 3.2 jobs for every $1 million spent, compared with 20.2 jobs per $1 million spent on food and meals.

Craigs Royal Hotel owner John Finning said it was not valuable to compare the impact of gaming machines in Victoria and WA.

"You can't draw conclusions from that single line of investigation," Mr Finning said.

"There is no question that the Victorian hospitality industry has been stimulated by gaming machines."

He also said the industry had been actively involved in State Government initiatives to reduce problem gambling.

Zagame's Ballarat Hotel general manager Janelle Beard said gaming complemented dining and other activities at the venue and boosted employment.

"In the past month we've employed three more people for the restaurant and two for the gaming room," Ms Beard said.

Buninyong Golf Club manager Gayl Sanderson said gaming was among the attractions that drew visitors to the venue.

Ballarat has 662 gaming machines, which is 203 more than the state average and mayor David Vendy said gaming machines cost Ballarat $50 million each year.

"We couldn't have any more in Ballarat," he said.

"$50 million goes out of Ballarat and that's a lot of money."

Gaming Minister John Pandazopolous said the government would use the report and three others released on Wednesday to stem problem gambling.

"Victoria is a leader in responsible gaming regulation and has less machines than all states except Western Australia," Mr Pandazopolous said.

"This research will help this government to take its fight against problem gambling even further."