"[The Problem Gambling Foundation doesn't] have an issue with gambling per se, but the harm and the impacts caused by people that do have some issues around gambling is our biggest concern," Mr Loach said.
"It isn't just the individual we're talking about - we're talking their family, their friends, work colleagues - the actual impact is a lot bigger than what we see."
A new Ministry of Health-commissioned study found the "burden of harm" posed by gambling affected non-gamblers four times more than those with a problem.
The analysis also found gambling causes 77 per cent of the harm caused by hazardous drinking - just over three-quarters the amount.
Mr Loach cited an Australian Government report from 2010 which showed problem gamblers, while a small percentage of all gamblers, contributed at least 40 per cent of money lost on pokies, and possibly up to 60.
"Most of our Class 4 venues are located in our higher deprivation, more vulnerable communities. Unfortunately, it's the people that live in those areas that are overrepresented in our problem gambling statistics."
Tauranga City Council's current gambling policy allowed for one pokie machine per 220 people. This was reduced in 2016 from one machine per 147 people in an attempt to "control the growth" and "minimise the harm to the community".
Bruce Robertson, the representative body Class 4 Gaming Working Group chairman, said very few people had any problem with gambling, and for most it was controlled and fun.
"The vast majority of people that play pokie machines are doing for entertainment and are doing within their limits," Mr Robertson said.
"The proceeds of gaming machines goes exclusively to good works in the community, and the government in tax. And that's all positive."
Charitable organisations, like Pub Charity, Lions and New Zealand Community Trust, own the pokies and receive money from the machines. They're required to distribute a minimum of 40 per cent of the money taken in to community groups and charities that apply.
"Nationwide that's something around $300 million a year going back to the community. It makes a really positive and constructive contribution to the community."
He said overall there was a long term decline gambling expenditure, and only in the last few years has it risen.
"You need to look at it in the context of the current economic environment. You've got a strong economy, you've got strong ongoing population growth and record tourist numbers. So really it's not a surprise the numbers are going up."
He said New Zealand was a world leader in supporting people who recognised they had a problem and sought help.
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By the numbers:
Pokie machine expenditure, from July to June:
2017: $39.06m. Per machine (680): $57,438
2016: $36.78m. Per machine (716): $51,373
- Source: Department of Internal Affairs