The Albanese government has long been under fire for a lack of action on gambling reform, failing to respond to the recommendations of a landmark review of gambling harm after almost three years.
The "you win some, you lose more" report, chaired by late-Labor MP Peta Murphy, called for a total ban on gambling advertising as well as more harm-reduction measures, including national data collection on gambling harms and suicides and a national strategy.
The Australian Centre for Disease Control - a powerhouse of public health data and advice - would formally recognise gambling harm as a significant public health issue under a private member's bill introduced by independent MP Monique Ryan.
In practice, the bill would increase data collection on the issue and allow for more effective strategies to protect Australians and their families, Dr Ryan said.
"Gambling is the root cause of so many harms including family and relationship breakdowns, domestic violence, mental distress, job losses, crime and of course suicide," independent MP and former GP Sophie Scamps said.
"How could it be treated as anything other than a public health crisis?"
The government was contacted for comment on the proposed bill, but has routinely defended its actions on gambling harm, saying it set up the self-exclusion register BetStop and banned credit cards for online gambling.
Public health and gambling expert Samantha Thomas said the industry was engineering harm by using a range of tactics to lure people into betting more.
"Recognising gambling as a public health issue will help us to change how we understand and respond to gambling industry harm," Professor Thomas said.
Wesley Mission supported gambling being treated as "a public health catastrophe".
"Our frontline teams see the daily toll, from housing stress and domestic and family violence to mental health distress and suicidal ideation," CEO the Reverend Stu Cameron said.
"Governments must act decisively to prevent and reduce gambling harm through strong evidence-based public health measures that will positively impact and save lives."
Peak industry body Responsible Wagering Australia said the sector had introduced harm-reduction measures but there was more to be done.
"We are so highly regulated and ... rightly so. We offer a product that can cause harm if not used correctly," CEO Kai Cantwell told a parliamentary hearing on Monday.
"There's still work for the industry to do as well. We're not shirking our responsibility."
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