Laws to restrict gambling advertising are being bargained over inside Labor’s caucus, as the prime minister warns a misstep could have “unintended consequences” for Australia.

A group of MPs were briefed on the government’s proposal on Monday, according to one caucus source.

Labor backbenchers have told the ABC the proposal would set a limit of two gambling ads per hour on each channel until 10pm, and ban gambling advertising during children’s programs or in the hour before or after a live sport event.

Those reforms fall short of a total ban on advertising championed by late Labor MP Peta Murphy and now backed in by former prime ministers John Howard and Malcolm Turnbull.

A number of Labor politicians have taken up Ms Murphy’s mantle and are pushing for the government to adopt a blanket ban on gambling ads.

On Monday, Prime Minister Anthony Albanese said in Question Time that exposing children to gambling was “untenable”, but the government needed to be careful the reforms did not have “unintended consequences”.

“The minister for communications and the minister for social services are getting on with tackling gambling harm comprehensively,” Mr Albanese said.

“And we’re doing that in a way that will ensure there aren’t unintended consequences.

“We’re taking a comprehensive approach, recognising this is a complex issue.”

Regional media profits a possible ‘unintended consequence’

The ABC has been told that of particular concern is how an ad ban could damage the bottom lines of regional media outfits like WIN and Prime, who already operate on thin margins and have in recent years shuttered some of their bureaus.

With an election around the corner, the government is particularly sensitive to an outcome that could harm regional media.