It comes after several venues went public with concerns that the draft policy would inadvertently hurt community groups that rely on gambling businesses and not-for-profits.

The RSL had feared veteran support programs, remembrance services and other projects could lose funding sources under one proposed change that could have minimised the council's support for community groups sponsored by gambling agencies or venues with electronic gambling machines.

Council officers have now redrafted one key clause so that the city would only minimise financial support, sponsorships and grants for activities taking place within gambling venues.

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The council officers have also scrapped a clause that could have stopped the council subsidising facility leases for tenants on municipal land who operate electronic gambling machines; and modified another clause to include language about working with, and supporting, venues that currently operate electronic gambling machines.

However, council officers have also added a new cause locking the council in to advocating for a reduction in the total maximum number of electronic gambling machines allowed in Greater Bendigo.

The area is allowed a maximum of 870 under current state government rules but the council would want to reduce that number down to 662.

That is the same number of electronic gambling machines currently operating in the area.

The council received 95 pieces of feedback during public consultations on a draft published earlier in 2021.

That included a mixture of views in support and opposition.

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"It was noted by Council that some submitters were concerned that implementing the policy would lead to closure of current venues. This is not the intent of the policy," council staff said in a newly published briefing document sent to elected officials.

Greater Bendigo's councillors will consider transforming the latest draft into official policy when they meet on Monday night.

The latest draft keeps key features from previous iterations including a particular focus on electronic gambling machines, council staff say.

"They are still the most dominant source of financial loss and harm in Australia and their use can be influenced by local governments," they told councillors.

The draft has also maintained a focus on "gambling harm" instead of "problem gamblers", the council officers said.

More matters coming before Bendigo's council on Monday:

The draft has also maintained a focus on "gambling harm" instead of "problem gamblers", the council officers said.

Experts have been urging councils and other governments to broaden their focus. They have argued that gambling affects more than those classified as problem gamblers and ranges from zero to severe harm.

Gambling can also harm families, friends and entire communities, council officers say.

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