The $28.5 million figure, drawn from losses on 757 machines, marks a significant increase compared to the same period the previous year.

Dr Kate da Costa, the NSW campaigner for the Alliance for Gambling Reform, described as "shocking" the magnitude of losses fuelling the profits.

"If these figures don't alarm people enough to get proper action, what will?" she said.

"This is shocking, it's another epidemic, and the government is taking the tax revenue but not properly calculating the cost."

According to new data published by Liquor and Gaming NSW, in the six months to December 31, 2020, pokies in Wagga, Narrandera and Lockhart's hotels made a net profit of $18.2 million from 362 machines.

During the six-month period to November 30, 2020, Wagga's five clubs generated a net profit of $10.3 million from 395 machines.

The figures for the same period in 2019 were $12.4 million for hotels and $9.4 million for clubs, for a total of $21.8 million.

Direct comparisons between the 2019 and 2020 figures for the Wagga Local Government Area are difficult as the latest data includes figures for Narrandera and Lockhart hotels, which were not part of the 2019 report.

However, the number of pokies has remained stable during that time, with 19 machines lost to clubs, but 20 more gained by hotels.

Overall in 2020, NSW saw gaming machine profits rise by 11 per cent in hotels and 7 per cent in clubs, compared with the same reporting period in 2019.

A spokesperson for Mission Australia, which runs gambling support services in communities in NSW, said their counsellors have noticed an increase in problem gambling in recent times.

The Greens candidate for the upcoming Wagga City Council election, Jenny McKinnon, said her party is advocating for a significant reduction in the number of poker machines across the state.

"Overall the availability of poker machines is a major problem and we have to get those numbers down," Dr McKinnon said.

State rankings show Wagga venues were up there with the state's top earners.

The Wagga RSL Club was in the top 10 per cent of the state at number 84, climbing from number 166 in the 2019 period.

Meanwhile, out of a total of 1288 hotels across the state, the Kooringal Hotel came in at number 131 and Farmers Home Hotel at 168.

No venues approached for this story were willing to provide comment.

Dr da Costa said it was concerning that pubs, and not clubs, are raking in more of the profits as clubs have programs to funnel a portion of their back to communities.

"There's huge amounts of money being lost in pubs, more than clubs, in Wagga and that's not going back into the community," she said.

"If that money was being spent in the main street it would transform the local economy, but more than half of it is going into the bank accounts of pubs."

Dr da Costa said it is time for NSW to treat problem gambling as a public health issue that impacts the whole community.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: