I was of the impression that the gambling laws were that a venue had to be profitable before they were allowed to have pokies, as they didn't want venues relying on them as a way to become profitable. Now I'm not sure how this rule affects venues which already have pokies, but if the place is losing money then I'm surprised they were allowed to have more machines.
Also my knowledge of this comes from about 12 years ago, so it may have changed by now.