This month, the Victorian Commission for Gambling Regulation released the maximum number of gaming machines allowed in municipal areas.

Following the changes, uncapped areas in Monash, including Mt Waverley, Glen Waverley and Wheelers Hill, will be entitled to 770 gaming machines - an increase of 388 machines.

Capped areas of Monash will have access to five more poker machines.

In 2001, the State Government introduced regional caps on the number of poker machines allowed in "high risk" areas, including Mulgrave, Ashwood, Chadstone, Clayton and Oakleigh.

But because only half the municipality is capped, problem gamblers need only drive down the road to have access to the extra 388 machines.

South Eastern Metropolitan Region MP Inga Peulich said the worst was to come, because the number of permissible poker machines was based on outdated population figures from 2006-07.

She said changes to gambling legislation in October, which stripped councils of their approval powers for gaming venues, gave rise to a fear of smaller venues opening in Monash.

Previously, gaming venue applications were considered by councils. Following the changes, applications for gaming venues are lodged with the commission and councils are given up to 97 days to make a submission.

Monash Mayor Paul Klisaris said the increase in poker machines could have a devastating impact on the community, which spent more than $123million in 1185 gaming machines last financial year - the second-highest amount in Victoria.

Cr Klisaris said the changes in legislation showed a lack of understanding of the issues surrounding problem gambling.

"We no longer live in a democracy in Australia - we are living in a fascist society. Not only has local government seen its powers in the area of planning being watered down over the last decade, we now have this situation where there is a total disregard for the wellbeing of our community."

A State Government spokesman did not respond to the Journal before deadline.