Tokoroa community group Feed Families Not Pokies wants the Auditor-General to look into a new pokie venue.
The local council has approved plans to combine three existing gambling vehicles into one mega centre with 30 pokies and a possible onsite TAB.
The South Waikato District Council says it's reducing an evil by lowering the number of venues residents could go to in the town to gamble.
But two of those venues were facing closure anyway, and a councillor owns one of the venues being merged.
Feed Families Not Pokies spokesperson Colin Bridle says the council hasn't followed due process, and they're concerned the council is making decisions that contravene a policy to not grant consent for any new gaming machine.
"They expect that they can reissue a licence without going back to full council," he said.
Mr Bridle believes the council has let the community down by letting plans for the venue go ahead.
"We believe that the council has been on a single wrong track."
Newshub.