LIVE IN-PLAY online and mobile app betting on AFL matches will remain banned for the foreseeable future.
The AFL had joined forces with other major Australian sporting codes to argue that in-play internet betting be legalised.
On Thursday, the federal government announced it had no plans to allow such provision, and said it planned to close a loophole in betting apps.
The Coalition of Major Professional and Participation Sports (COMPPS) had claimed live betting would provide better standards of integrity, by allowing sporting bodies to better monitor betting activity.
The government has also called on betting agencies to immediately deactivate 'click-to-call' functions in their betting apps, which provided a shortcut to phone bets. It is promising legislation to outlaw that practice as well.
In-play betting is legal when a client telephones their bookmaker to place a wager.
"I would hope that they would cease doing this today, because we have clearly indicated that we believe they're operating against the intent of the law, if not the actual law," federal human services minister Alan Tudge said at a press conference on Thursday.
"The government does not intend to further expand the online betting market in Australia by legalising online in-play betting."
The AFL has an official partnership with bookmaker CrownBet.
It also has relationships with other Australian betting agencies to monitor wagering activity on its matches.