Jono Tubby had always loved a drink and a flutter on the pokies when he was training as a sailor.

Key points: Victorian RSL's made only $8 million profit on almost $260 million revenue from poker machines in 2017

Victorian RSL's made only $8 million profit on almost $260 million revenue from poker machines in 2017 Only $9.8 million of total revenues went into welfare programs

Only $9.8 million of total revenues went into welfare programs A group of young veterans are now campaigning to have pokies removed

A group of young veterans are now campaigning to have pokies removed They believe the social costs outweigh the money raised through pokies

But when he was discharged, just days before his 22nd birthday, and put onto a Veterans' Affairs incapacity payments, his habits became a serious problem.

"I just ended up in pubs, clubs, spending from 11 in the morning, drinking beers and playing poker machines," he told 7.30.

"So it became habitual very quickly, and from that habituation it then became, I would say, an addiction."

Mr Tubby is not sure of exactly how much money he has blown on the pokies, but estimated it could be anywhere up to $100,000.

"It's pretty hard to live with," he said, sitting in his bare flat, where he is his living with his partner as he studies to become a photographer.

Now Mr Tubby tries to avoid places that tempt him.

And that includes RSLs, where pokies have become a key fixture in the last 30 years.

"The whole dynamic of the RSL needs drastic change," Mr Tubby said.

"For service personnel, ex-service personnel to be in an environment that is supposed to cater for them and their families, it runs through making profit off poker machines.

"It's taking advantage of people that are in need most.

"It's almost like kicking a person while they're down."

RSL shouldn't 'run venues that prey on gambling'

Veteran David Petersen doesn't think pokies in RSL clubs are worth the social cost. ( ABC News )

There are about 280 RSL sub-branches in Victoria, of which 52 have poker machines.

Now an insurgent group of young veterans, led by 32-year-old former Army officer David Petersen, is pushing back against the Victorian RSL's reliance on its gaming sub-branches to pay for veteran welfare.

Mr Petersen is president of the tiny Camberwell sub-branch, which has no poker machines and fewer than 20 members.

"The RSL should not be in the business of running poker machines for multiple reasons, but principally it doesn't make us a lot of money," he told 7.30.

"I don't think the community knows about that.

"They think that they put this $1 in the machine, money comes out at the other end for veterans. And it's not true."

In 2017 the 52 gaming sub-branches brought in almost $260 million in total revenue and about $8 million in profit.

Of that total revenue, less than 4 per cent, $9.8 million, went back into welfare programs that are shared between veterans and the wider community, including donations to sporting clubs and subsidised meals for pensioners.

The state secretary of the Victorian RSL, Brigadier Mike Annett, is a staunch defender of poker machines.

"The sub-branches ... put $9.8 million, to a greater or lesser degree, directly to services that are either related to a veteran or supportive of veterans," he told 7.30.

A further $6.8 million raised by appeals like the annual Poppy Appeal goes only to veterans.

Mr Petersen believes the money that does go back into veteran welfare is not worth the social cost of pokies.

"I work in veteran suicide prevention as a day job and a large number of those individuals who have had suicidal behaviour present with a gambling and alcohol or drug addiction of some type," he said.

"I don't think the RSL should be running a venue that preys on the gambling and the alcohol component."

'Staring at a screen pumping money'

Rob Ingleby enjoys the support he gets from his RSL but is no fan of poker machines. ( ABC News: Chris Gillett )

In an industrial warehouse in Cranbourne, in outer Melbourne, a small group of ex-servicemen and women are enjoying a bite to eat and tinkering on three Army vehicles bought by Dandenong RSL.

It is a gathering for a younger generation of veterans who find comfort and camaraderie in the weekly meet-up.

"It's a social contact with other veterans who understand what I'm saying, whereas my civilian work friends have no idea," said Rob Ingleby, who served as an airborne artilleryman from 1982 to 1996.

The challenges of recruiting a younger generation of veterans to the RSL is well documented.

The Victorian RSL estimates between 10 to 15 per cent of its 24,000 ex-service members are post-Vietnam.

Dandenong RSL is widely recognised as having one of the best young veteran welfare programs in Victoria, including a full-time welfare officer.

Its president, John Wells, says the program it is largely funded by poker machine money.

"You can only make so much in a chook raffle," he said.

But among the young veterans, views are divided about the role of pokies and whether they feel welcome at RSL clubs.

"I'm not a fan of pokie machines, maybe because I've had my own problems with addictions," Mr Ingleby said.

"I don't want to fall victim to them, so I think that's part of the reason I've avoided RSLs — that they do seem to be pokie venues.

"You're not really with your mates, you're not really there interacting with other veterans, you're just staring at that computer screen and pumping money."

Anita Hogan, an ex-servicewoman who organises the Dandenong Young Veterans, sees the upside.

"Nobody is making people go in and gamble, although I understand people have addiction difficulties, but I don't think you can blame the RSL for having pokies," she said.

"They put the money back into welfare so ... it's a hard one to answer."

Contemplating a future without pokies

Dandenong RSL President John Wells is looking to diversify. ( ABC News: Madeleine Morris )

A number of Victorian gaming RSLs have closed over the last decade due to financial difficulties.

The organisation plans to rely on pokies revenue even more as it expands its veteran offering through a network of professionalised welfare hubs, located away from RSL sites.

"The network model will very much be underpinned by the fiscal capacity of those of those 52 [gaming] sub branches," said Brigadier Annett.

In 2017 the Victorian RSL branch received a sponsorship of $500,000 from gaming giant Tabcorp, which supplies 2,800 poker machines to the state's RSL clubs.

Brigadier Annett denied it had any influence on the branch's strategic direction.

"I don't think it clouds your judgment," he said.

"I think it's it's got to be applied in such a way that we get the greatest benefit for the 280 sub branches across the state."

Tabcorp told 7.30 its specific arrangements with partners such as RSL Victoria are commercial-in-confidence, but annual sponsorship is a normal form of commercial arrangement and one that it has with other community partners.

Dandenong RSL president John Wells said he was starting to look to a future relying less on poker machines.

"They are losing popularity. They are no longer the golden eggs.

"Young people are generally not taking them up and not interested.

"So simply as a matter of good business we're looking at diversification."