States baulk at mandatory pokies reform

The federal government is claiming a win on the pokies after the states and territories agreed that setting gambling limits can be beneficial.

But it still faces an uphill battle to implement its mandatory pre-commitment scheme after all states, except Tasmania, argued that it should remain optional.

The scheme would require patrons to nominate their maximum losses before they started playing the pokies.

Families Minister Jenny Macklin on Friday said the wide-ranging reform will go ahead - and legislation is already being written up - whether the states liked it or not.

"I would prefer to get an agreement with the states and territories," she told reporters in Canberra.

"But we want to see a full or mandatory scheme ... so we will now proceed to draft our legislation."

Gaming ministers met in Canberra on Friday to pow-wow about the government's planned reforms, the initiative of independent MP Andrew Wilkie.

He made the government promise last year to crack down on pokies and problem gambling in exchange for his support which saw Labor form minority government.

Ministers on Friday agreed to lay the groundwork for pre-commitment technology, which Ms Macklin labelled a "practical step forward" in pokies reform.

But the matter of how it will be enforced remains the key battle.

Voluntary schemes already exist in places like Western Australia and Victoria, allowing gamblers to set their maximum losses before they start playing.

Victoria's gaming minister Michael O'Brien says the technology works, but has vowed to fight the scheme being made compulsory.

He'll take the state's opposition as far as the High Court if need be, arguing it infringes on individual rights.

"We think we have a far more effective integrated package that will work, whereas the Wilkie deal is basically born of a quick political fix," Mr O'Brien told ABC Radio.

But Mr Wilkie said that any court challenge was destined to fail.

He's sure the government's legislation will pass the parliament, thereby putting the kybosh on any legal challenge.

The government is still hopeful to work things out with the states, with legislation not due until early 2012, and coming into effect by 2014.

Smaller clubs, with 15 or fewer machines, will be exempt from the laws for four years to allow for an easier transition.

Ms Macklin said "a couple of states" raised the issue of compensation at the COAG meeting given the predictable loss in gaming revenues, but it wasn't "pursued".

Ministers meanwhile moved on other gambling reforms, agreeing to think about putting dynamic warnings on poker machine displays and limiting ATM withdrawals at pubs and clubs.

There was also progress on live betting at games, which has recently come under scrutiny in the NRL and the AFL.

The government has banned the promotion of live odds during sports coverage, whether it be at the game, on television, radio or online.

Independent senator Nick Xenophon, who has proposed introducing legislation on the same issue, welcomed the changes, but urged the governments to go further tackling things like exotic bets, like who will kick the first goal.