Labor formally agreed to the gambling reform deal in a caucus meeting on Tuesday, with the coalition following suit soon after.
Under the proposed changes, Australians would have access to a one-stop shop allowing them to opt out of online betting ads, put limits on commissions for betting agents and restrict incentives for punters.
Betting ads would also be banned from stadiums, jerseys and during live sport.
The amendments agreed to by the major parties include minor increases to the daytime blackout to 15 minutes before sporting broadcasts and moving the start time of broadcast restrictions to 5am until 8.30pm.
The gambling reforms will face a review three years after they take effect.
Multiple parties including members of the coalition think the changes don't go nearly as far as a 2023 report, led by the late Labor MP Peta Murphy, demanded
Nationals MP Pat Conaghan, a member of the original Murphy inquiry, gave a scathing critique of his party for not pushing harder on reform.
"Peta would be disgusted in her own party," Mr Conaghan told AAP.
"They have had an opportunity to really honour Peta by implementing at least the main points of the the recommendations, and they chose not to."
The so-called Murphy report handed down 31 recommendations in 2023 outlining a plan to completely phase out gambling ads over a three-year period.
"I sat with Peta Murphy for hours and hours and hours trying to get those recommendations right, and we landed on it, in my view, appropriately," Mr Conaghan said.
"The number one issue throughout the whole of the inquiry was the inducement issue."
The Nationals backbencher decided to vote against his party's amendments after he saw them on Tuesday morning.
"I think (Ms Murphy) would say thank you for actually crossing the floor and and trying to make a difference," he said.
The legislation now includes a ban on direct inducements but only within 90 days from when an individual signs on to the self-exclusion register, BetStop, which Mr Conaghan said is akin to a "fox in a henhouse"
"We know the predatory practice that they have been doing for years and years and years, and now we're trusting them to do the right thing. Well, I'm sorry, I'm simply not that gullible," Mr Conaghan said.
Mr Conaghan crossed the floor with his Liberal colleague Andrew Wallace who hasn't voted against the coalition in nearly a decade.
Mr Wallace said he was advocating for the ban on gambling advertisements for jerseys and stadiums to take place immediately.
Mr Wallace said he had raised his concerns with his colleagues for many weeks but failed to gain support.
"Ultimately, my colleagues made a decision that this was as good as they were going to get," he said.
Liberal communications spokeswoman Sarah Henderson rejected Mr Wallace's assertion and said the coalition has provided certainty in the bill.
"We've got the balance right, and you know we're very proud of the work that the coalition has done," she said.
The amendments would support those most at risk of harm without preaching to the community, Prime Minister Anthony Albanese said.
"Australians will be better protected from inducements and direct marketing," he told parliament.
Greens senator Sarah Hanson-Young slammed the major party leaders in the Senate likening Opposition Leader Angus Taylor to Mr Albanese's dog Toto for blindly following Labor.
The Greens demanded a complete ban on all online gambling advertising and called for the establishment of a national regulator which has not been included.
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