The former Victorian premier has started to approach people, including federal politicians, about a fresh campaign to ban advertising, promotion and sponsorship by corporate bookmakers.

Among MPs he has already spoken to is outspoken anti-gambling Senator Nick Xenophon.

On Monday Mr Kennett made "an admission I don't often make", conceding that privatising the TAB in 1994 when he was premier was wrong.

He said he had not predicted the negative implications of the change, as it paved the way for betting competition from privately owned bookmakers that pay a lot less to the racing industry.

Mr Kennett later told Fairfax Media that the saturation of gambling advertising was doing untold damage to younger generations.

“We are educating generations of young Australians that the only way people can have a successful life is by gambling,’’ Mr Kennett said.

He said federal intervention to ban gambling advertising was the only way forward. There are already strict rules banning promotion of poker machines.

There was a strong push during the Gillard government for a ban on betting advertising during sporting broadcasts. In response, the industry introduced a code of conduct for broadcast that has reduced some in-play advertising.

“Voluntary codes don’t work. It is still just everywhere, it is saturation promotion and advertising,’’ Mr Kennett said.

He said he would be trying to talk to everyone in federal politics about it. Senator Xenophon said the pair had common concerns about corporate bookmakers and would continue discussing the issue.

Chris Downy, chief executive of the Australian Wagering Council, which represents corporate bookmakers including Sportsbet and Betfair, said members were committed to ensuring advertising and promotional activity conformed to all existing codes and rules.

“The ability of licensed, highly regulated Australian online bookmakers to advertise and promote their business is essential to their sustainability and competitiveness in the Australian marketplace,'' Mr Downy said.

He warned that any impact on the competitiveness of the product would drive punters to overseas unregulated bookmakers.

“Prohibition does not work in an online environment.  Any attempt to ban licensed online bookmakers from advertising, promoting or sponsoring racing or sport also poses a huge danger to the integrity of sport and racing in Australia."

Greens gambling spokesman Senator Richard Di Natale, who has previously called for a crackdown on betting advertising, said while he had not spoken to Mr Kennett, his door was "wide open for a discussion on banning gambling advertising."