Tabcorp plans in coming months to open a TAB in the premises now occupied by a Blockbuster video store at Pemulwuy Marketplace,

Video store owner Sam Romano said he had been given until the end of the month to move out after Marketplace owner charter Hall Group refused his application to extend his lease late last year.

"Our customers are disgusted that we're moving to make room for a place like that," Mr Romano said.

"Most of our customers are young families. This area is a residential area and we've got mostly families with small children coming to us to pick up some DVDs to watch on the weekend.

"This TAB is being moved from Greystanes and I don't go there myself, but I understand that there are a lot of people hanging out out the front and drinking and smoking.

"People are concerned that the same thing will happen here."

Mr Romano said residents had drafted a petition, which already had many signatures, against the TAB.

Sue Hoy said the proposed TAB would be across the road from a community centre being built by Holroyd Council. The centre will have a childcare facility.

"These sort of establishments attract unsavoury characters," Ms Hoy said.

"There's a liquor store at the Marketplace and we're worried that people will be buying alcohol and drinking it in front of the centre and smoke out there.

"Children should not be exposed to that."

A Tabcorp spokesman said the store is relocating from Bathurst Street, Greystanes to the marketplace because Pemulwuy is a stronger retail precinct.

"Pemulwuy provides our customers with better amenities such as parking and food and beverages," the spokesman said.

"As a large retail business, it is our intention to make our retail [outlets] offer as convenient as possible for our customers. Many locals enjoy their sport and racing."

He said Tabcorp will comply with the development approval for the premises.

In response to a question about the opening hours, he said they have not yet been determined.

A Charter Hall spokeswoman would not comment on why the lease was not extended because the matter involved commercially sensitive information.