Prime Minister Anthony Albanese has declared that promotions used by betting companies to woo gamblers are over the top and must be wound back, signalling an about-face on gambling laws that will restrict how the industry uses free bonus bets and VIP managers.

Options being considered include a minimum age to receive promotions, banning predatory inducements and curbing the role of VIP agents and the way they receive commissions.

Albanese previously insisted the government had struck the right balance on its watered-down and delayed gambling reforms. Before the parliament took a break over winter, he told question time in early July that those seeking stronger action could take or leave the laws as they were.

But a Senate inquiry into the gambling legislation, which the government wanted to avoid, was held over the break and heard alarming testimony about gambling addicts being lured with drugs, escorts, free hotels, exclusive events and thousands of dollars in free bets.

The Coalition last week cited the testimony of former professional rugby league player Luke Bateman as it said Labor’s laws were “riddled with deficiencies and must be significantly amended” – calling for stronger action on betting inducements, as well as tighter advertising laws for streaming platforms.

Opposition leader Angus Taylor and Albanese had several meetings this week to hash out the details. On Friday, Albanese said the government would introduce stronger rules for promotions and inducements. “They’re over top and they need to be wound back,” he said when asked.

“Some of the inducements that will encourage people into the system are just not on ... We’re going to wind them back, and we have a position that we took to our ALP national conference in Adelaide along those lines.”

The prime minister left himself wriggle room on gambling last month when he allowed into the party’s national platform a clause promising tougher action on inducements.

Members of the party’s Left – who have long pushed for stronger restrictions – came to an agreement with Communications Minister Anika Wells at last month’s national conference on the wording of an amendment that also urged tougher oversight of the government’s advertising rules.

While harm reduction advocates and many in the Labor caucus had wanted the government to implement the 2023 report by the late Labor MP Peta Murphy – who recommended a total ban on inducements and gambling advertising – Albanese has sought to strike a balance that gives people personal choice and does not damage businesses in the media and sports industries.

“There’s nothing wrong with people having a punt on a Saturday. There’s nothing wrong with people having a beer after work. The problem is if it’s an addiction,” he said again on Friday.

“If there are inducements or they’re encouraging that addiction, that’s a bad thing … We’ll go through our process respectfully in our caucus, as will other parties here. But can I say I welcome the constructive discussions which have taken place.”

The Coalition has also been balancing the advocacy of some members who have been pushing for tougher laws, such as MPs Simon Kennedy and Andrew Wallace, with others who are concerned with overregulation or forcing industries underground.

Taylor will take the party’s position to a shadow cabinet meeting on Monday, and the party room meeting on Tuesday, before sealing a deal with Albanese.

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Natassia Chrysanthos is Federal Political Correspondent. She has previously reported on immigration, health, social issues and the NDIS from Parliament House in Canberra.Connect via X or email.