Gambling advertising during sports broadcasts should be put in the same category as alcohol and smoking and severely restricted, a psychology expert warns.

The federal parliamentary joint committee on gambling reform heard evidence at an inquiry in Melbourne on Tuesday into the promotion of live odds and gambling advertising in sport.

Australian Psychological Society spokeswoman Heather Gridley told the hearing the proliferation of gambling advertising in sport has the effect of normalising it.

"Gambling advertising during sporting matches and related broadcasting should be seriously restricted, if not banned," she said.

Ms Gridley said research shows an increase in exposure to gambling advertising is a risk factor for the development of gambling problems.

Coalition of Major Professional and Participation Sports executive director Malcolm Speed said his members had signed up to a new code restricting live odd promotions during sports broadcasts which would come into effect this year.

His organisation represents the AFL, rugby union, rugby league, netball, soccer and tennis.

The new code will ban promotion of live odds by commentators.

However, the restrictions would not apply to paid and clearly identified sponsorship.

Australian Greens senator Richard Di Natale asked whether the code would apply to paid television services or only Free TV networks.

"I don't know the answer to that," Mr Speed said, agreeing that it would be a concern if they were not included.