An online sports betting agency head has admitted a proposal by commercial TV networks to limit gambling ads during sports broadcasts does not meet public expectations.

Gambling industry bosses have been meeting with TV executives this week to discuss the proposed code, which recommends the promotion of live odds be restricted to scheduled breaks in sporting coverage.

For example, under the proposal the promotion of live odds could occur during quarter and half time breaks in football telecasts and tea-breaks during the cricket.

But Betfair chief Giles Thompson says it is clear from the public backlash towards the proposed changes that it is not restrictive enough.

"It is a proposal open for discussion and the backlash against this [is the] suggestion that it hasn't gone far enough," he said.

Mr Thompson, who is also a member of the Australian Wagering Council that represents seven corporate bookies including Tom Waterhouse, says discussion on the the proposal is ongoing.

The council last month gave the thumbs up to the suggested TV code, but at the 11th hour changed its mind.  

"We need to find something that the community is comfortable with, [and] that the commercial stakeholders are also comfortable with. This is a process," Mr Thompson said.  

Meanwhile, Communications Minister Stephen Conroy has warned the gambling and TV industries that he will impose tough limits on the promotion of live betting odds if their plan does not properly address community concerns.

"If we're not happy, if we don't think that the code has responded to community concern, we will step in and go further. They must respond to this community concern," he said.

The Government is facing growing internal pressure to act, with a number of backbenchers planning to support a motion on the issue at next week's caucus meeting.

Labor MP Stephen Jones will move a motion in next week's caucus for a complete ban during children's viewing hours.

Fellow backbencher Graham Perrett says he is willing to back it, even though he has a Centrebet account and believes gambling is a large part of Australian culture.

He has nominated the embedding of bookie Tom Waterhouse on Channel 9's footy coverage earlier this year as a watershed moment.

"It has become way too pervasive," he said.

"I have an eight-year-old son that we occasionally watch a bit of footy together and I don't like to be explaining to him about gambling when I'm there to watch the footy."

Mr Perrett says he understands the federal Caucus will be broadly supportive of the bill.

"It's about separating the children's viewing hours even with that exemption for sport, from the gambling ads," he said.

"That's how I see it. It's not so much the breaks. I mean that's a pretty good step in the right direction but I think we need to go a little bit further."

This week South Australia proposed to go it alone and ban the promotion of live odds before the end of the year, pre-empting striking a deal on a national approach.

Tom Waterhouse was not available for comment. Attempts to seek comment from the Australian Wagering Council's CEO were also unsuccessful.