Bendigo City Council Gaming Revenue Allocation Update Directs Funds to Health Capital Works

Bendigo City Council has adopted an updated gaming machine revenue allocation under its 2026 local government policy framework, directing 35 per cent of licence fees from machines in the municipality to capital works at Bendigo Health. The measure affects operators of the 428 electronic gaming machines currently licensed across 12 venues in the city and surrounding suburbs.

Why the change is occurring now

The update follows the release of the Victorian Department of Treasury and Finance mid-year budget review in June 2026, which revised projections for gaming tax receipts downward by $48 million statewide. Local government authorities were required to submit revised allocation plans by 30 June to align with the new state revenue settings.

For Bendigo residents the shift means additional resources for planned expansions at Bendigo Hospital, including a new renal dialysis unit scheduled for completion in 2028. Households in Epsom and Huntly suburbs, where two venues operate, will see no immediate change to poker machine numbers, but the council has indicated that future licence renewals will be assessed against the new revenue split.

Operators of clubs in central Bendigo and Kangaroo Flat will receive reduced annual returns from the previous 70 per cent retention rate, with the difference transferred to the health service. Local advocates note that several smaller sporting clubs have already flagged reduced spending on junior programs as a result of the lower projected income.

The Productivity Commission reported in its 2025 inquiry into gambling that regional Victorian councils collected an average of $1.9 million each from gaming machine fees in the 2024-25 financial year. Bendigo's share under the updated formula is projected at $2.4 million for 2026-27, of which $840,000 will move to Bendigo Health.

The council will review the allocation again in December 2026 after the first quarterly revenue figures are finalised, with any adjustments to be published in the next quarterly financial report.