A decision to stop funding projects from the proceeds of pokies should help maintain Hamilton City Council's impartiality.

The council's voted 8-3 in favour of the move.

Hamilton Mayor Andrew King told Mike Hosking up until now, the council has been the decision makers on where pokies go, as well as benefiting from them.

"It's like we are the regulator, the benefactor, the game keeper and the poacher and that's not quite right."

He said smaller groups have missed out.

"There only coming to save $10,000 for a rugby trip away or whatever they need and we were coming in with our higher skill set and taking all the money."

King said it wasn't right for the council to be regulating the machines, while also benefiting from them.

LISTEN ABOVE AS ANDREW KING SPEAKS WITH MIKE HOSKING