The proposal also recommended a relocation ban on venues so they were only able to move into the CBD.
Te Tatou o Te Arawa Board representative Eugene Berryman-Kamp opposed increasing the cap.
"I'm struggling with how we've gone from the preferred option of a sinking cap and no relocations," he said.
Mayor Steve Chadwick said the message of the council was clear.
"This is a type of gambling we don't want in the suburbs, full stop," she said. "I don't split hairs over the 382 or 380 and it fits better in the CBD as part of our revitalisation. I believe this does reflect what we heard during the submission process."
Te Tatau o Te Arawa Board representative Ana Morrison agreed with Mr Berryman-Kamp.
"Let's not forget the previous comments that 88 per cent of the population want to see them [machines] reduced," she said.
She also made an amendment to include education facilities into the proximity restrictions.
This means pokies are no longer able to be within 100m of an educational facility, school, early childhood centre, kindergarten, place of worship or other community facility.
Councillor Karen Hunt said she was in support of the proposed policy changes.
"Our previous policy, while it appeared stronger, really achieved very little," she said. "We can put any cap on it, and feel really good about it, and achieve nothing.
"You can't just put someone out of business because you don't like the business they're in. It is legal."
Deputy mayor Dave Donaldson said there was immense value in the submissions process and he had been impressed by the hearings.
"Reduction of machines has not seen a corresponding reduction in harm," he said. "It's where they are."
Community board chairman Phill Thomass said the number of machines in Rotorua needed to be reduced.
"I am disappointed we are maintaining the cap level, so I can't support the recommendation."
Councillor Tania Tapsell said she was also disappointed in the proposal.
"While it's clear we can't get rid of pokie machines altogether, I think we should have taken a harder stance," she said.
"We're helping the community, but we're not helping it enough. I do believe we could have done a lot more with this."
Councillor Merepeka Raukawa-Tait said she didn't believe the changes would have the impact they were looking for.
The committee then agreed to maintain the cap at 380 and allowing existing venues to keep their machines if they relocated, to encourage centralisation.
The hope is that numbers will be reduced below the exisiting cap if a venue closes.
Councillor Charles Sturt, Mr Thomas and Combined Ratepayers Association of Ngakuru, Waikite Valley and Atiamuri chairwoman Shirley Trumper voted in opposition of the changes.
Mrs Trumper said it didn't take into account areas like Reporoa which had five pokie machines that would not be able to relocate other than to the Rotorua CBD.
Policy changes to be voted on by council on July 27
- The cap will remain at 380 machines with relocations permitted with existing machine numbers.
- A ban on inter suburb relocation so machines can only move to the CBD.
- "Other education facilities" will be included in the proximity restrictions.
- The discussion will now come up again in three years instead of six.
