Under proposed changes set to pass parliament later on Wednesday, Australians will 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 problem gamblers.
Anthony Albanese told parliament acting on problem gambling in sport was difficult and required a national effort.
"We took action legislating the strongest reforms to tackle gambling harm of any government ever and striking a balance so Australians can still have a punt, if appropriate and if they wish, on a Saturday afternoon," he said.
In what is shaping as a productive week for the government, its contentious NDIS reforms to cut funding costs have already passed, and it is likely to secure a deal with the Greens to pass legislation to make tech companies pay more for using news from traditional media.
"None of these are easy reforms," Mr Albanese said.
"They require listening. They require hard work. They require action.
"But that is what delivering real change requires."
The gambling legislation has backing from both major parties, despite concern the partial ban on inducements will only apply to people during the first three months on the self-exclusion register BetStop.
The Greens have flagged concerns with the implementation of the opt-out system and the timeline of the changes.
A coalition-backed investigation of the legislation in three years' time will be useless, according to Greens communications spokeswoman Sarah Hanson-Young, who said half of the reforms were unlikely to be rolled out by then.
The deputy opposition leader has defended tolerating internal dissent after two coalition MPs broke ranks over the changes.
Backbenchers Pat Conaghan and Andrew Wallace crossed the floor to vote against gambling ad reforms on Tuesday, bucking the party line for the first time in their political careers.
Jane Hume said there had been robust debate within the coalition about the reforms and welcomed the decision of her colleagues.
"When you join the Liberal Party, you don't sign up for a frontal lobotomy the way you do in the Labor Party. We are entitled to cross the floor," Senator Hume told reporters on Wednesday.
"That's a healthy democracy at work."
Ms Murphy's widower Rod Glover said the bill was a big improvement on the status quo in a post on social media.
But he admitted it still falls well short of the Murphy Report recommendations.
"The limits of the reforms reflect, in large part, the considerable lobbying power of the gambling industry, major sporting codes and media organisations," he said.
The peak body for betting agencies has criticised the amendments for complicating the Australian market and playing into offshore illegal gambling sites.
Responsible Wagering Australia chief executive Kai Cantwell raised concern with the opt-out advertising register to be run by the media watchdog.
"These measures will significantly curtail our ability to advertise a legal product safely to adults," Mr Cantwell said.
"If you push people away from the licensed, regulated market ... you don't stop them punting."
Liberal senator Paul Scarr will cross the floor when the bill reaches a vote in the upper house.
"It'll be only the second time in the seven years I've served in this place that I've chosen to do so," he said.
"But I think this is such a serious issue for millions of Australians who've been impacted by gambling harm, and this is such a flawed piece of legislation that I have no choice but to do so."
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