The federal government has told anti-gambling groups it wants a ban on in-stadium electronic sideline advertisements common during AFL and NRL games in an effort to mollify Labor backbenchers pressing for a more comprehensive halt to betting promotions.

Though still falling well short of a total ban on gambling advertising, the move would end what campaigner Tim Costello called the “particularly offensive” high-profile digital messaging from online sports betting companies.

Communications Minister Michelle Rowland is also mulling an option that would force sporting codes to remove the logos of betting companies from their jerseys and uniforms.

It is understood both measures would require agreement from state and territory governments.

Ms Rowland’s office declined to comment on the government’s reforms, including whether they would be revealed to the Labor caucus as early as today, Melbourne Cup Day.

The long-awaited gambling reforms have put the federal government on a collision course between well-heeled gambling companies, cash-strapped free-to-air sports broadcasters and members of the Labor backbench and even some Coalition MPs who want a full ad ban.

“They’re being very cagey about it,” one Labor backbencher told the ABC of the government’s plans.

Mr Costello, chief advocate of the Alliance for Gambling Reform, told the ABC he believed the prime minister was the main reason the government was not adopting the full recommendations of a parliamentary inquiry headed by the late Peta Murphy.

Ms Rowland “is now trying for signage and jersey bans”, he said. “She understands the risk of grooming children.”

Mr Costello said the proposed ban on in-stadium electronic advertising and on jerseys was “really necessary” but insufficient.

“If you want to protect children you have to have a total ban,” he said.

“Every ad influences them to become a gambler.”