ATMs are already banned in pubs and clubs that offer slot machines, but punters in every state except Tasmania have continued to be able to make as many withdrawals as they like using the venue's EFTPOS terminals.

Anti-gambling groups say the new Victorian limit, although a step in the right direction, falls well short of the $200-a-day EFTPOS withdrawal limit imposed in Tasmania, and will have little impact on the problematic behaviour of gambling addicts.

Government-funded research in 2015 found that people with gambling problems withdrew an average of $318 per gambling session, while gamblers who did not have a problem withdrew about $66 a session on average.

"If the government had set the limit ...at $200, they would have had almost no impact on people without gambling problems, but a reasonable impact on people with problems," said Mark Zirnsak, of the Victorian Inter-Church Gambling Taskforce.

"From our perspective, this means a lot of people are going to continue to lose far more than they can afford."

The decision will also anger the nation's club operators, who did not support additional limits on EFTPOS transactions, arguing patrons used cash for a variety of reasons other than gambling.

"There is insufficient credible evidence to support such a change," Clubs Australia said in its submission to the government on the proposal.

"There are numerous other reasons why patrons may wish to use cash in a club, including meals, drinks, community raffles, sport and entertainment optiosn."

The move is part of a suite of reforms aimed at tackling gambling-related harm, unveiled by Gaming Minister Marlene Kairouz???, which also bans the cashing of cheques at gaming venues, and increases the number of state municipalities where new caps on poker machines will apply.

Under current laws some municipalities are covered by partial caps where certain areas have restrictions.

The new caps, which industry sources said would cover entire council areas, will come into force in Brimbank, Hume, Maroondah, Wyndham and Frankston, and to the regional municipalities of Central Goldfields, East Gippsland and Wellington.

Ms Kairouz said the latest measures were about "protecting people, and helping those who choose to gamble stick to their limits".

"We are capping pokies numbers across the state, limiting daily cash withdrawals in venues and restricting betting advertising in our public spaces."

"We have already taken strong action to reduce the harm from gambling on our community - and these measures go even further."