The Northern Territory Government has slightly lowered the cap on the installation of gaming machines in community venues.

Last year, the Territory Government announced a nine-month moratorium on approving new pokies and this week, lowered the cap on gaming machines from 1699 to 1659.

It comes in response to community backlash against a proposal from hospitality giant, Iris Capital, which would have seen 60 new pokies installed in the central Australian town, where problem gambling is already causing significant harm.

The change means,. Iris Capital’s application for 40 machines across two venues have been withdrawn, but another application for 20 machines remains.

Northern Territory Gaming Minister Chansey Paech has told ABC Alice Springs, the Government’s aware of the issues caused by problem gambling.