Independent MP Andrew Wilkie says the federal government damaged itself by backing out of its agreement with him to pursue poker machine reforms.
Mr Wilkie said he continued to disagree with government claims that it lacked the numbers to push through proposed reforms to poker machines to limit problem gambling.
"I think this has done the government a bit of damage because it has been seen not to honour an agreement with me and not to try everything it could have done to have honoured that agreement," he told Sky News.
"The government has lost some skin on this. But that's the government's own choice."
Faced with growing opposition from licensed clubs and uncertain whether it had the numbers to push through the legislation, Prime Minister Julia Gillard backed out of its agreement with Mr Wilkie.
He in turn withdrew his support for the government, although he said that didn't mean he was backing the coalition.
Mr Wilkie said Ms Gillard should still have brought the legislation into the parliament even if she didn't have the numbers.
"It should have been debated, all the different assertions tested and it should have been put to the vote," he said.
Mr Wilkie said he believed many members of the community saw this as much more than about poker machine reform.
"A lot of members of the community were seeing this as a fundamental test of the character of the government and of the character of the prime minister and myself," he said.
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