Collingwood are the latest AFL club to cut poker machines as a revenue source.
The Magpies have joined North Melbourne and Melbourne in announcing they either have exited the gaming industry or will do so.
They will sell the licences for their two gaming venues to the Melbourne Racing Club.
The Coach and Horses in Ringwood and The Club in Caroline Springs have a combined 156 machines.
"The decision of the board to sell our gaming operation and some of our hospitality interests will allow us to intensify the focus on our core responsibilities - Collingwood fans, elite sporting performance and community - but also enable us to pursue new and different possibilities for growth," Collingwood president Eddie McGuire said.
"Collingwood is in a strong financial position, with net assets of $32 million, and with the continuing support of its members will be in an even stronger position with this sale.
"It is the right time for Collingwood to be making this move."
Collingwood also said in a club statement that it is a complete and immediate exit from the gaming industry.
The settlement of the deal is expected in October and follows last year's review of club operations.