Figures released by the Victorian Local Governance Association show the city's gambling losses increased by 5.5 per cent for the year, equating to $780 per adult.

It was the biggest gambling spend ever and came despite the introduction of smoking bans three years ago and a reduction of 15 machines.

Ballarat has 659 gaming machines across 15 venues.

The city has Victoria's 12th highest gaming spend per adult.

Mayor David Vendy said he was concerned by the figures, but stood by the council's earlier decision to endorse an extra 10 poker machines at the Flying Horse Tabaret in Redan after another venue relinquished 35.

Applications for an extra five machines at the Sebastopol Bowling Club and 10 at the Ballarat Golf Club were rejected. The state's gaming authority is expected to make a final decision on the three applications shortly.

Ballarat City Council has committed to reduce the number of gaming machines to a state median of 456.

The city is also being investigated for a State Government gaming cap.

"We've put in this policy use them or lose them," Cr Vendy said. "It (the figures) would suggest to me that the policy is correct and that we're going down the right track."

Gamblers Help Grampians coordinator Claire Ryan said about 130 new clients sought help each year, with the organisation assisting up to 80 problem gamblers every month.

Ms Ryan said gaming caps alone would not solve the issue with access to pokies, opening hours and venue promotions contributing to the problem. Gamblers Help counsellor and community educator Kathy Griffin said the impact

of problem gambling was devastating.