New research shows only 1.5 per cent of the money gamblers in Victoria's RSL have lost on poker machines over the years has been used to improve veterans' benefits.

The study was published in the Australian and New Zealand Journal of Public Health, Ten years of records submitted to the Victorian Gambling and Casino Control Commission were analyzed.

The report found that between 2009 and 2019, clubs licensed by the RSL (Returning and Services League of Australia) in the state netted $2.097 billion from gambling.

A detailed analysis of that period shows that for every $100 lost on slot machines, only $1.50 was spent on veteran support.

There are nearly 300 RSLs in Victoria, more than 50 of which have poker machine licenses.

In order to receive tax benefits, the RSL must spend 8.3% of its gaming revenue on "community donations" each year. However, clubs can claim operating expenses (including wages and grounds maintenance) as community donations.

The research found that the RSL directs less than 10% of its reported community donations to support veterans.

The study's lead author, Dr Louise Francis from Curtin University, said donation schemes amounted to a "legitimization strategy" by the gambling industry, in which charitable acts divert attention from the harm caused by gambling.

Francis described the program as "a highly inefficient way to fund community initiatives," raising ethical questions given that much of the money goes toward venue operating costs rather than veteran services.

“My research shows that (the money) doesn’t really go back into the community the way it should,” she said, adding that in some cases, “we see 100 percent going to operating expenses instead of A donation”.

The analysis found that on average, Victorian RSL businesses with poker machines spent 12 times more than donations to support veterans.

"Ultimately, I don't think this program should exist," Francis said. In her view, the RSL had become "obsessed with making money from pokies".

Francis added that the research raised the question: "Why are the RSL so committed to being associated with gambling, while the very groups they are supposed to protect are suffering so much harm?"

Australian and international research shows veterans are at higher risk of gambling problems than the general population.

RSL Victoria chief executive Sue Cattermole said in a statement: "Support for veterans' benefits comes from a number of different activities at the branch. The operational aspects of the game mentioned here are just one of them.

“We hypothesize that this study only focuses on one area of ​​branch operations and therefore does not reflect the full financial contribution to veterans’ benefits.”

Cattermole added there was a “huge funding gap to meet the growing demand for veterans’ support”.

"To bridge the funding gap, some branches have chosen to run catering and entertainment operations to raise funds. These actions and the costs associated with them do fit in with RSL Victoria's core mission of supporting veterans as without them the funding gap would be even greater."

“The result of branches reducing these operations is that fewer veterans will receive the support they need.”

Western Australia is the only state where pokies are not legal in hotels and clubs such as the RSL. The country has the lowest per capita gambling spending rate as of 2023 data.