The Federal Government wants to close a loophole that enables punters to use smartphone "click to call" apps to gamble on live sports betting on the internet.

Australia allows in-play betting to take place only over the phone.  But some sports betting companies now have phone applications that allow users to easily place bets during play.  These make an automated call within the app, giving gamblers the power to place bets within seconds.

"I would hope that they would cease doing this today, because we have clearly indicated that we believe that they're operating against, certainly, the intent of the law, if not the actual law," said Human Services Minister Alan Tudge, who added that the government is working with banks and credit cards to block offshore betting.  "The tougher laws will seriously disrupt the illegal offshore providers from acting unscrupulously or targeting vulnerable Australians," he said.