The Turnbull government is considering a major crackdown on gambling ads during TV sporting events as it seeks to strike a deal with the Senate crossbench to water down Australia's media ownership laws.

Nick Xenophon, whose votes will be crucial for media ownership reform to pass the Parliament, is using a ban on betting ads during sporting broadcasts as a bargaining chip in his negotiations with the government.

Even betting operators such as Tabcorp and commercial TV bosses have admitted to concerns about the surge in gambling advertising over recent years. More than one in every six ads broadcast during AFL matches last year were for gambling companies.

Fairfax Media understands the government is willing to commit to slashing TV gambling advertisements in exchange for the support of the three Nick Xenophon Team (NXT) senators on media ownership deregulation.