There will be no extra poker machines in Victoria until 2042, after the Andrews Government froze the number of pokies as part of a suite of reforms to the industry.

Key points: Number of Victorian pokies to be capped at 27,372 for 25 years

Number of Victorian pokies to be capped at 27,372 for 25 years Gambling reformers slam licence extensions

Gambling reformers slam licence extensions Expert warns policy could create 'mega clubs'

Under the changes, the next batch of pokies licences to come into operation in 2022 will be granted for 20 years, doubling the current arrangement but not fulfilling an industry push for licences to be granted in perpetuity.

Clubs will also be able to double the number of pokies they operate in their group from 420 to 840, which will allow AFL and Racing Clubs to increase their market share.

Pubs and clubs had argued that longer licenses would give venues more certainty when making business investments and borrowing from banks.

Victorians lost more than $2.6 billion in 2015-2016 on the state's more than 26,300 machines, excluding Crown Casino.

The State Government says the number of pokies available to be operated in the state will remain capped at 27,372 until 2042, but this tally does not include the more than 2,500 pokies operating at Crown Casino.

Venues will continue to be restricted to a maximum of 105 machines.

Gambling reformers have welcomed new tax brackets to ease the pressure on venues that are not making much money while slugging venues with higher punter losses, but have slammed the licence extensions.

Alliance for Gambling Reform spokesman Kelvin Thomson, a former federal Labor MP, said: "Issuing 20-year pokie licences is undemocratic, and condemns another generation to family violence, financial wreckage, family breakdown and emotional trauma caused by the poker machine industry."

"The current 10-year licences are as long as any licence to cause harm should ever be. Every MP should ask themselves if they want this to be their legacy," he added.

The pubs sector meanwhile will now be able to access unused allocation of pokies from the clubs industry — Victoria currently has a system where pokies are evenly split between clubs and the hospitality sector.

'Mega-clubs' could cannibalise smaller groups: expert

Monash University public health expert and pokies researcher Charles Livingstone warned that allowing clubs to access more machines could create mega-clubs that would cannibalise smaller community groups.

He said in Victoria pokies in pubs earnt twice as much as machines in clubs.

Community Clubs Victoria president Leon Wiegard said 20-year licences gave clubs more certainty. But capping machines did not allow for population growth, he added, warning it may mean growth areas may not be able to get clubs.

The ALH group, which is part owned by Woolworths and operates a large slice of the state's machines, welcomed the changes to licences but did not wish to comment further.

The changes were made in response to a government review commissioned by former minister Jane Garrett into gaming machines.

A second part of the review regarding harm minimisation will be released later this year.

"Not a single extra gaming machine will be allowed in Victoria for the next 25 years, helping limit gambling-related harm in our community," Gaming Minister Marlene Kairouz said.

"These reforms also provide certainty to pubs, clubs and hotels across Victoria, and have been informed by an extensive review that included more than 200 public submissions."