VRC had planned to build an entertainment centre with 80 poker machines on the corner of Epsom and Ascot Vale roads.

Maribyrnong Council was set to lodge an objection with the Victorian Commission for Gambling Regulation on the grounds that VRC's report on the social impact of putting poker machines close to Footscray failed to take into account the suburb's existing disadvantage.

A statement from VRC late last week said it would "continue to evaluate a number of options for the club's gaming business".

Simon Love, VRC executive general manager for corporate development, said: "The VRC undertook extensive research into the feasibility of relocating the club's existing Tabaret operation to a new entertainment facility within the Flemington racecourse precinct.

"This research included an independent survey of 500 [randomly selected] local residents, where less than a quarter of respondents opposed development of the facility.

"The final decision, however, was on economic grounds given industry uncertainty, cost of the project, and that a better use of the Epsom Road site had been determined."

A report prepared by Maribyrnong Council stated Footscray had high levels of welfare dependency and the pokie venue would be in a convenient location for punters who lost more than $10.5million on pokies during 2009-10.

"The proposed Flemington racecourse entertainment centre ... could see an increase in losses of $1.416million from gambling in the municipality," the report said.

The plan to relocate the venue from the

Flemington racecourse grandstand to within

500 metres of a housing commission estate drew flak from residents who said it would put poker machines "in the midst of the most disadvantaged people in the local community - those who live in public housing and the elderly".