The coalition will force the federal government to make changes to its gambling reforms, following concerns betting harm is not being taken seriously.
Under the federal government's proposal, gambling ads on TV would be limited to no more than three per hour between 6am and 8.30pm and be banned from live sport broadcasts.
Gambling ads would be banned from stadiums and player jerseys, but the government has been criticised for not implementing a total ban, as recommended in a report by late Labor MP Peta Murphy in 2023.
Labor needs the support of either the coalition or the Greens to get the laws through the Senate, but neither party has backed the changes.
Opposition communication spokeswoman Sarah Henderson said the proposal was "riddled with deficiencies", with significant changes needed.
"It is clear the government has completely dropped the ball on delivering meaningful, workable reforms," she said in a statement on Wednesday.
"The bill ignores gambling inducements which are causing immeasurable harm to some Australians. There is mounting evidence legislative action is required to combat predatory inducements which target high-risk or vulnerable gamblers."
The comments follow a Senate inquiry into the laws that heard allegations betting companies provided drugs, free accommodation and escorts to some of their biggest customers as inducements to keep gambling.
Former NRL player Luke Bateman also gave evidence he was targeted in a similar way while he was struggling with a gambling addiction.
Sportsbet and Tabcorp have denied the claims.
Senator Henderson said the coalition was working to finalise amendments to the gambling laws.
"Australians can be assured we won’t be supporting this deficient legislation in its current form. We also won’t cop Labor’s spin on gambling reform," she said.
"After three years of delay, deflection and deception over gambling reform, the Albanese government’s failings on this bill are inexcusable."
Independent senator David Pocock said he was shocked by the testimony at the gambling inquiry.
"No one thinks (the proposed laws are) going to do anything to change the normalisation of gambling amongst young people in this country," he told ABC TV.
"You have a predatory industry that is doing everything to normalise gambling amongst Australians."
Labor MP Josh Burns said the allegations at the inquiry were shameful but denied the reforms would maintain the status quo.
"I'll have the power under our reforms to turn off gambling advertising right in our home. So I'm going to have a gambling advertising-free home thanks to the legislation," he said.
