Live online betting during sports will remain illegal and loopholes being exploited by bookmakers will be closed, the Turnbull government has said, a move major sports say is a missed opportunity to boost sports integrity.

In a bid to stop Australians punting with illegal offshore betting websites, the government also wants to introduce "disruption" tactics, including blocking foreign bookmakers' websites and working with banks and credit card providers to stop payments.

But local online bookmakers have slammed the decision to maintain the "archaic" ban on in-play betting, warning it will simply force more Australian punters to use offshore illegal websites.

Last night some bookies, including William Hill, were still offering controversial click-to-call option – which is a loophole around in-play betting. The company declined to comment when contacted. Possible fines for providing the service are up to $1.8 million a day.

The Coalition of Major Professional and Participation Sports, which represents Australia's biggest codes including the AFL, NRL and Cricket, executive director Malcolm Speed said it welcomed moves to tackle overseas operators.

"However, we consider the government has missed an opportunity to improve the integrity of Australian sport by deciding to not lift the prohibition on in-play online wagering," Mr Speed said.

Human Services Minister Alan Tudge on Thursday released the long-awaited review of illegal offshore gambling by former NSW premier Barry O'Farrell. The review was completed in December. It doesn't tackle gambling advertising, which critics say is a missed opportunity to address a growing community concern.

It is estimated that up to $400 million is gambled by Australians via illegal offshore providers.

In-play betting

Australia's major sports, including the AFL, and online bookmakers have been lobbying hard for live in-play betting to be legalised online. At present, bets on an event can only be made during play in person or over the phone.

But some bookies, including William Hill, have offered "click-to-call" services by using internet phone calls that do not connect.

Mr Tudge said the government would introduce laws as soon as possible to close the loophole, and he urged bookies to stop the practice.

"We are of the view that they have been in breach of the intent of the law, if not the actual law," Mr Tudge said. "We do not intend to further expand the online betting market."

With the Federal Parliament due to be dissolved shortly, there is little chance any laws will be changed until after the election.

Mr O'Farrell said that if in-play sports wagering were to be expanded in future, "further work is required to identify practical ways to avoid or minimise" risks to sports integrity.

The Australian Wagering Council, which represents major online players including Sportsbet and William Hill, slammed Mr Tudge, saying the decision to maintain the archaic ban on online in-play betting would hand more money to offshore bookies.

"Perhaps the gravest omission, and the real missed opportunity, is the apparent abandonment of Australian sport and sports integrity," AWC chief executive Ian Fletcher said.

"Australians will continue to use the power and freedom the internet gives them to make choices about what they bet on [racing or sport, domestic or international events], when they bet [pre-match or in-play] and how they bet [in person, on the phone, or via the internet]."

He said "click-to-call" was a response to public demand but said wagering operators would work constructively.

Gambling advertising 

The review had tight terms of reference, and despite many calls for it to address gambling advertising, the issue was not a major part of it.

Many people giving evidence to Mr O'Farrell's inquiry raised the issue of advertising, but his only recommendation on the matter was the need for a nationally consistent approach.

Mr Tudge said he heard "quite frequently" from parents concerned about gambling advertising.

Politicians from both the Coalition and opposition have privately said that action is required on gambling advertising, especially during sport.

The Greens have promised to outlaw gambling advertising in the same way cigarette ads are banned.

Mr O'Farrell recommended there be a national policy framework to "include consistent, enforceable rules about advertising of online gambling", he also wants stronger guidelines about social media and gambling.

Pressed as to whether the Coalition would tackle advertising at the election, Mr Tudge said he would not foreshadow election policies.

A national approach to online gambling

Online gambling in Australia is regulated by a mix of state and federal laws, which Mr O'Farrell said are "inconsistent and complex".

His review recommends a national approach, including a self-exclusion register for problem gamblers, voluntary limits for punters across all bookmakers and regular expenditure statements given to gamblers.

Bookmakers will be banned from offering credit, and Mr O'Farrell also wants a crackdown on the link between pay-day lenders and gambling.

The government will give the Australian Communications and Media Authority new civil penalties, including offences for people who facilitate offshore gambling. And it wants to make the law clear that it is illegal for unlicensed overseas bookies to offer bets to Australians.

"Our expectation is that organisations in responsible jurisdictions will heed to Australian laws," Mr Tudge said.

Directors of unlicensed bookmakers will be placed on migration watch lists and banned from entering Australia.

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