Sports betting ads could be banned on public transport and near schools under a proposal by the Victorian Government.

The State Government has begun public consultations and is calling for submissions on proposed restrictions on gambling advertising.

Gaming Minister Marlene Kairouz said under the plan sports betting ads would be banned in a number of places including areas frequented by children.

"What we're wanting to do is ensure they're no longer exposed to betting advertisements while they go to and from school each day," she said.

"This is supported by community concerns about the impact of gambling advertising, in particular because it normalises gambling amongst our most vulnerable, including children."

The ads would also be banned in areas that were an unavoidable part of the public's day-to-day activities, such as public transport.

"There is absolutely no question that sports betting advertising has become prevalent and more noticeable," she said

"These reforms are an important first step to limit the community's exposure to betting advertising, especially in places where people spend a lot of time and find hard to avoid."

Ms Kairouz did not provide any detail on possible areas the bans may be introduced or how far away from schools ads would need to be placed.

Calls for total ban on TV sports betting

She said those details would be worked out during the consultation phase, but that something needed to be done because problem sports gambling cost the Victorian community between $1.5 billion to $2.8 billion a year.

But while the costs are big, Victorian Opposition Leader Matthew Guy said bans alone would not work and the Government needed to reinvest in services it had cut.

"This Government has ripped out millions from anti-gambling measures in its first few months and has not replaced a cent of it," he said.

The Government said it had committed $150 million over four years to Victoria's Responsible Gambling Foundation.

Meanwhile, anti-gambling advocates said they supported the idea of bans, but wanted more.

"Sport betting is a problem," said Dr Charles Livingstone from Monash University.

"It has been growing rapidly and in the past year it grew by 30 per cent," he said.

"But the number one priority is for the Federal Government to prohibit sports betting on television — end of story."

Advertising on radio, television and online is controlled by the Commonwealth.

But Tim Costello from Alliance for Gambling Reform said the Victorian Government could encourage the Federal Government to act.

"[Sport] is the only adult product given a special exemption to be on G-rated family television, that kids are watching, and that is morally wrong."