The report states that the venue is located at Golden Point in an area of relatively high socio-economic disadvantage.

It also says the hotel is in a area where there is already a high level of gaming machines relative to other Ballarat suburbs.

The report says that more than half the suburbs located within five kilometres of the Red Lion Hotel were in the top 20 per cent of socio-economically disadvantaged suburbs in Victoria.

"There is strong evidence that the majority of electric gaming machine gamblers travel only a short distance (under five kilometres) from home to gamble," the report says.

Another issue surrounding the application listed in the report is the expenditure from electronic gaming machines across Ballarat.

Electronic gaming machine expenditure at Golden Point for the financial year 2009-10 was $4,427,589 more than expenditure for central Ballarat.

The average expenditure per gaming machine was $99,759 for Golden Point compared

with $68,417 for central Ballarat.

An analysis by Progressive Venue Services indicates the additional nine machines will attract an extra $647,103 in gaming expenditure to the venue annually, the report says.

"Given the high concentration of EGMs in the Ballarat municipality, it is important council seeks to minimise the negative social impact through encouraging and advocating for harm minimisation and through clearly articulating where gaming venues should be prohibited or discouraged," the report says.

"The application to increase the number of electronic gaming machines by nine should be opposed..."

The report also recommends council prepare a submission to the Victorian Commission for Gambling Regulation. The report will

be tabled at tomorrow's meeting.