The venue, the Robin Hood Hotel in Peel Street, made the undertaking when applying to install gaming machines in 2012.

The Robin Hood Hotel was phoned for comment but no reply was received.

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The venue has applied to the Victorian Commission for Gambling and Liquor Regulation to add another eight electronic gaming machines - pokies - to its current number of 20.

Publicly available documents state the venue would commit to donating an additional $10,000 per year to community groups if the application was successful.

However, the documents note that the company has failed to turn a profit since 2014-15, and the most it has donated to community groups in a single year is $44,091, in 2018-19.

The company has still donated money each year, to groups and sporting clubs across the city - the documents note this has included sponsorships and in-kind donations to football, netball, cricket, and hockey clubs.

The director of the company which owns the Robin Hood, Jayeesar Pty Ltd's Stephen Beaumont, said in his submission other venues opening nearby had affected revenue.

"(W)hen the Hotel commenced trading its profitability was initially well below what was expected. In particular, we had relied upon a prediction of likely gaming expenditure that ultimately took more than five years to be realised at the venue," he submitted.

"As a result of this reduced profitability, we have been unable to comply with our community contribution undertaking.

"I am aware that by 'putting our head above the parapet' in relation to this application that we open ourselves up to scrutiny in relation to that undertaking. We also risk a diminution of our reputation with the Commission."

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He states if the venue's application is granted, revenue would also be used to expand the sports bar, creating more employment.

"This application is really the final piece of the puzzle in getting the Hotel to where our customers need it to be and where we need it to be to be profitable," he submitted.

"If this application is approved, we will commit to increasing our cash contributions by $10,000 per annum for as long as any of the additional entitlements are in operation."

The venue's application is supported by a Social and Economic Impact Assessment from Ratio Consultants.

"As part of its premises approval, the Applicant committed to the provision of $50,000 per annum in cash contributions, this was in part guided by the expenditure projections prepared by PVS which estimated between $1,223,688 and $1,381,731 in gaming expenditure per annum," the report states.

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"I am advised that the Hotel has been unable to fulfill this component of its approval as the expected gaming revenue has not met the projected levels and the venue has been operating at a loss since 2014.

"The Applicant has provided cash donations to various local sporting and community groups since it was approved."

The report concludes "(o)n balance, the eight additional EGMs at the Robin Hood Hotel will have a slightly positive net social and economic impact on the local community and more broadly with respect to the City of Ballarat."

A VCGLR hearing date has not yet been set.

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