Three years after a Labor-led report recommended banning all ads for online gambling, the government introduced legislation tackling the issue on Thursday.
But the bill, which the government described as the strongest ever reforms to address gambling harms, fell short of the recommendations of the review led by late Labor MP Peta Murphy.
The legislation proposes to restrict gambling ads on TV to no more than three per hour between 6am and 8.30pm, and completely ban it during live sport within those hours.
It will also ban online gambling ads for under 18s, radio ads during school drop-off times, as well as athletes and influencers from promoting gambling.
Those changes fell short of what was needed to protect families and children, Greens senator Sarah Hanson-Young said.
"This is an industry that makes its money off misery and loss," she told reporters in Canberra.
"Already you can start to hear voices from across the parliamentary chamber ... and now even within Labor's own ranks, that they know that this bill is not up to scratch."
The opposition and the crossbench teamed up to send the legislation to a Senate inquiry over the winter break, which will report on August 17.
Labor backbencher Louise Miller-Frost acknowledged more needed to be done to tackle gambling incentives and wanted a federal regulator installed.
"I would like to see more again but this is a really good step forward," she said.
"There's a lot of us that think it is unfinished business."
The coalition wants the government to strengthen the laws but has not gone as far as the Greens in calling for a total ban.
Liberal MP Simon Kennedy, whose close friend was a gambling addict, said he had witnessed how insidious and prolific sports betting was firsthand.
By requiring online gambling advertisers to provide an option to opt out, the legislation left the door open to limitless online advertising access, he said.
"One thing they should be looking at is an opt in," he told Sky News.
"We've all had that subscription where you're like, how do I cancel this thing, and you can't find it, and they bury it in the settings, and you have to try and find it to opt out."
Prime Minister Anthony Albanese defended the legislation, saying it was the strongest action any government had taken against gambling advertising in history.
"This is good reform," he told parliament.
"This is a major step forward, and the parliament should vote for it. If they don't, then you do have the option of the status quo."
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