Problem gamblers often underestimated how much they had lost and monthly statements were not transparent enough, independent MPs Andrew Wilkie and Rebekha Sharkie said as they put forward legislation.
"This would cost the government very, very little to police, but this would stop lives being lost," Ms Sharkie told reporters in Canberra on Monday.
"Right now, young people across Australia are losing thousands of dollars ... and they can't see your way out and this would help them to see exactly how much they're losing."
Alliance for Gambling Reform Martin Thomas branded it an epidemic, with one statistic putting one in five suicides as gambling-related.
"There are two reasons for this - one is there's very weak consumer protections and the other is gambling companies are predatory," he said.
Betting agencies could target people online using social media algorithms and take advantage of consumer data to get people to spend more, Mr Wilkie said.
"If they know you, they know to target you because you're someone that might bet more or take up betting, gambling," Mr Wilkie said.
"That to me, to my simple mind, to the last degree, says they know enough to embed in that ad, that targeted ad, that sort of information."
Communications Minister Michelle Rowland is under pressure to act on gambling reform with independent MPs and advocates pushing to ban digital and TV advertising, measures that are opposed by betting agencies.
A draft policy proposal would have banned ads on children's programming and either side of sports broadcasts while TV ads outside of this would be capped at two an hour.Â
This was scrapped before it was made public and no action has been taken, with any hope action on gambling advertising would be taken before the federal election - due by May - withering away.
Critics have chastised Ms Rowland for failing to act on a landmark gambling harm report handed down by late Labor MP Peta Murphy that had all-round support more than a year-and-a-half later.
The cornerstone recommendation was the phase-out of betting ads.
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