Woolworths chairman James Strong has urged shareholders to vote against a resolution to restrict the supermarket giant operating poker machines in hotels.
More than 200 Woolworths shareholders, led by social activist group GetUp! requested earlier this year that the supermarket giant hold a separate extraordinary general meeting (EGM) to vote on imposing limits on its more than 200,000 gaming machines.
In the Federal Court in July, Woolworths successfully applied to have the EGM delayed until the same day of its annual general meeting (AGM) on November 2.
The resolution would impose one dollar betting limits and revenue limits of $120 an hour per machine.
It would also prevent the use of gaming machines for more than 18 hours at a time.
If successful the changes would take effect from 2016.
The company on Thursday sent shareholders documents about the EGM and AGM in which Mr Strong urged them to vote against the gaming machine resolution.
Mr Strong said the changes would place Woolworths at a significant competitive disadvantage and could reduce the company's value.
"The changes proposed by GetUp would apply only to Woolworths in isolation and not to any other competing hotels, licensed clubs or casinos that operate gaming machines in Australia," he said in the document.
"There is no reliable evidence that the measures proposed in the resolution will have any impact on problem gambling in Australia."
He said Woolworths hotels provided a family friendly environment, good meals and the gaming machines were part of a diverse entertainment offer.
GetUp! was not available for comment.