Peers have demanded a ban on gambling advertising, marketing and sponsorship, claiming that Britain should shrink the betting industry to tackle harm.

The House of Lords liaison committee said ministers must pursue a total ban regardless of the economic damage it would cause, claiming they should abandon efforts to grow the gambling industry.

They said the UK should outlaw betting adverts on both television and online, while also scrapping gambling sponsorship in sport.

The proposals triggered an immediate backlash from betting firms, which warned that cutting off a major source of advertising and sponsorship income would cost jobs and hit sports organisations.

Lord Foster of Bath, who has addressed the issue of gambling for years, said: “There will be that reduction. Nobody is remotely denying it. Indeed, that’s what we want to happen. I want the gambling companies to be making less money.”

The committee acknowledged that a ban would have “immediate economic impacts” on gambling companies, sports bodies and other businesses but stressed that gambling should be “tolerated but not promoted”.

Modelling cited in the report estimated that gambling companies would suffer a £812m hit from the proposed ban, costing the UK economy £134m.

However, the Lords argued that most gambling spending would find its way into other parts of the economy.

Andy Burnham backed a ban on gambling sponsorship while mayor of Greater Manchester in 2022, saying “together we can relegate gambling sponsorship of sport to the history books” and that “for the sake of children and young people, it’s time to take a stand”.

The later suggestion followed a 2020 Lords report which called for a public health approach to gambling, but the committee said its recommendations on advertising, marketing and sponsorship had been “largely unaddressed”.

While the 2020 report said there was no definitive link between betting advertising and problem gambling, the latest Lords’ proposal said there was now “strong evidence” of a link between advertising, participation and harm.

It concluded that “a comprehensive ban represents the most effective long-term policy option” and recommended that ministers implement one “as soon as practicable”.