The Federal Government put its revamped poker machine legislation to Parliament on Thursday – after securing the support of the Greens, but long-time campaigner for pokies reform Independent Senator Nick Xenophon didn’t mince his words on what he says is a missed opportunity. “Piss-weak” is how he described the government’s plans to curb problem gambling.

Minister Jenny Macklin introduced the legislation which will set a $250 daily withdrawal limit on ATMs in most gambling venues from May next year. It also means future poker machines will have to be capable of allowing gamblers set a limit on the amount they are prepared to lose.

“We know that no-one sits down to lose their whole pay cheque, week’s grocery budget or the money for the school items for their children – and that’s what pre-commitment helps to protect against,” said the Minister. “It gives people a tool to help them take control of their own spending.”

The Gillard government announced in January that it was abandoning a deadline to introduce mandatory pre-commitment technology for pokies – limiting what a gambler could lose in a session.

The turnaround broke a deal made with independent MP Andrew Wilkie – made in order to form a government, which involved changing poker machine laws and a roll-out of pre-commitment technology by 2014. The government backed-off in trying to force the legislation through Parliament after it appeared to not have the numbers to pass.

Instead the government promised to introduce laws requiring pre-commitment technology be installed on every new poker machine manufactured from the start of 2013, with a trial taking place in the ACT – if all the clubs who operate poker machines are prepared to take part. Senator Xenophon told reporters that he was “sceptical and very cynical” about what the government has done in introducing the watered-down legislation.

“The problem is a voluntary system won’t work because if somebody pre-sets one machine and they’ve just done their 100 or 200 or $1,000 on the machine, they can then go to another machine because the system is entirely voluntary,” he said.

“The reform that we needed – [is] one dollar bets, or at least having machines that were one-dollar-bet ready, as recommended by the productivity commission, and this isn’t in this package of reforms.”

An independent think-tank which the government has agreed to fund will investigate additional reform options such as the one dollar bet limit. Asked if he would be supporting the legislation in its passage through parliament, Xenophon said he would need to see its details.

“Most of all I need to speak to the people that matter on this – that is the many problem gamblers and their families that I’ve dealt with over the years, in the 14 years I’ve been involved in this campaign.”

The legislation is unlikely to clear Parliament before the end of the year. Nick Xenophon also introduced a bill into parliament last week – to tighten the regulation of poker machine payouts after allegations that pokies were being used for large-scale money-laundering.

The move follows a report in The Australian newspaper that alleged a Melbourne hotel had failed to act on suspicions of money-laundering, after a pensioner and his family collected more than $630,000 in winnings between March and August. “This story could well be the tip of the iceberg,” Senator Xenophon said.