The government has outlawed betting on overseas lotteries, effectively signing the death warrant of gambling company Lottoland in Australia, but the company says it isn't going anywhere.

The Gibraltar-based company's product, known as "synthetic lotteries", will be banned after draft laws cleared parliament on Thursday night.

The government and Labor united against synthetic lotteries after concerns they entice people away from traditional lotteries and the revenue they generate for newsagents, pubs and clubs.

But not all newsagents were against Lottoland, with some groups arguing the company's demise will stop increased competition in lotteries, hurting small businesses.

Lottoland chief executive Luke Brill denied the changes signalled the end.

Mr Brill said they wouldn't come into force until 2019 and the company was "well advanced" in exploring other ways to continue delivering choice to 700,000 registered Australian punters.

"We are here to stay," he said in a statement on Thursday.

"We will continue to innovate and adapt so that we can continue to provide our customers with the type of exciting and innovative products they have come to expect from us over the past two years."

Last month, Mr Brill said the company would consider a High Court challenge if the bill passed parliament.

Independent senator David Leyonhjelm voted against the ban, saying it was a shameful protectionist measure to lock out an innovative company.

"We should not be closing down businesses, we should be encouraging it," he said.

Communications Minister Mitch Fifield said the government was committed to ensuring gambling takes place with strong consumer protections and within the boundaries of community standards.

"This legislation will also protect the more than 4000 small businesses including newsagents, pharmacies and community clubs and pubs across the country who operate long-standing, recreational betting services," he said in a statement.

Lottoland has vowed to honour its three-year sponsorship deal with NRL club Manly even if the legislation passed.