GAMBLING losses in Whittlesea may continue to rise after the approval of more pokies for the Bridge Inn Hotel in Mernda.

The Victorian Commission for Gambling Regulation approved Bridge Inn Hotel developer Benmara's application for 40 poker machines without conditions on September 2.

Previously, the hotel was granted 40 poker machines on the condition that 20 be bought from other venues in the municipality.

Whittlesea Council is yet to decide whether to challenge the decision.

The application was the hotel's third attempt to increase its number of poker machines.

Benmara applicant Edward Victor Gauci said in an application witness statement the VCGR conditions set in 2009 were not commercially viable.

Mr Gauci said the hotel required revenue that could only be generated with a minimum of 40 poker machines.

The decision means there will be 40 more poker machines in Whittlesea, rather than the 20 ordered in the previous decision.

Whittlesea Council sustainability planning acting manager Felicity Ayres said the southern part of the municipality had four of the top 10 venues in the state for gambling losses.

"Council is disappointed that conditions requiring a number of the machines to be sourced from the southern capped area of the municipality have not been upheld," she said.

Ms Ayres said reducing the number of machines in the area would have benefited the community.

Mernda and District Residents Association secretary Matt Ferrantino said he was unaware another application had been made.

The VCGR is expected to release its reasons for the decision by the end of the month.