Meeting of state and federal ministers in Canberra agreed that the promotion of live odds during the broadcast of sport events had to be curtailed.
Governments are concerned that promotion, including commentary by sporting role models, is becoming insidious in live sports coverage," the Select Council on Gambling Reform stated in their communique following the talks.
Under the plan, which has backing from the responsible ministers at the state and federal levels, broadcasters would not be able to promote live odds and gaming websites. The arrangement will cover all sports with the exception of horse racing, which has been excluded due to its long-standing connection with the pastime.
Senator Stephen Conroy, the communications minister, said that the Government would discuss the proposed rules with broadcasters, with a particular focus on how the restrictions would operate.
"The particular concern of all the ministers was the practice by commentators reading out odds and encouraging people to get on," he said.
Conroy said that the government did not wish to override existing commercial arrangements between broadcasters and betting agencies. Networks will have twelve months to alter their practices voluntarily; otherwise, the Government will introduce retrospective legislation to ban the activity.
The peak body representing commercial free-to-air networks, Free TV Australia, said in a statement that it would negotiate over the terms of the ban. But the body's chief executive Julie Flynn insisted that any proposal must also cover other forms of media.
During cricket broadcasts, for example, commentators which include former Australian captains break away from ball-by-ball coverage to give up-to-date odds from a gambling agency to reflect the current state of the match.
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"We are concerned that this can significantly influence vulnerable and young people and normalize gambling behaviour," the statement said.
If the gambling industry and television networks do not voluntarily halt such promotion by the end of June next year, legislation to ban it will be introduced to parliament. The proposed restrictions will apply to all sports with the exception of horse racing.
The Australian government also announced a review of existing online gambling laws.
Senator Stephen Conroy, the government minister for broadband, communications and the digital economy, said there would be no new contracts allowed for in-game betting, including odds on scoreboards at sporting events.
Commonwealth wants the measure compulsory while the states want a voluntary system, and some want compensation for lost tax revenue system.
Community Services Minister Jenny Macklin foreshadowed a constitutional showdown on the issue.
Ms Macklin said that in February it had been made "very clear" the Commonwealth had constitutional power to legislate on the issue and override the states.
She said legislation will be drafted in conjunction with independent Andrew Wilkie, who has made mandatory limits a condition of his support for the minority government, for operation by 2014.
"I would prefer to get an agreement with the states and territories and I do think today is a very significant step forward," Ms Macklin said after a meeting of the Council of Australian Governments.
"It is the first time all of us - the states, the territories, and the Commonwealth - have agreed that pre-commitment technology is a very helpful tool for people who are gambling on the poker machine.''
Victorian Gaming Minister Michael O'Brien said after the talks his state would install the technology needed for pre-commitment on all poker machines, but make its use voluntary.
"Ministers noted that members do not agree on whether such technology should be used on a voluntary or mandatory basis," the council's communique stated.
"Ministers asked senior officials to do further work on developing the required functionality for pre-commitment and a timetable for implementation.
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