A federal MP claims Australia's political donations system is little better than the sleazy cash-in-brown-paper-bag operations that occur in corrupt developing nations.

Independent MP Andrew Wilkie lashed out the major parties and some of his crossbench colleagues for accepting "grubby money" from the gambling industry, which successfully rolled back his attempts to curb poker machine use in Australia.

He said large donations the gambling industry made to the political parties and to the Liberal MP and then opposition spokesman Kevin Andrews were made as investments in return, whether that be an immediate or eventual policy decision favourable to their vested interest.