The new law will become official from October 2021, with online sales to those under the age of 18 to stop in April 2021.
The decision forms part of the impending review of the gambling industry from the Department for Digital, Culture, Media and Sport (DCMS), which aims to ensure customer protection right across the industry.
The banning of betting firms from sponsoring football shirts and limits on online stakes are set to be just two of the issues in consideration.
Current legislation was established in 2005, but much of that may change drastically in the coming months.
As announced by the government, a call for evidence will run for 16 weeks until March 2021, which will focus on issues such as extra protection for young people, as well as promotional offers.
The role of the Gambling Commission will also be analysed.
“We're committed to protecting young people from gambling-related harm, which is why we are raising the minimum age for the National Lottery,” said sport minister Nigel Huddleston.
“Patterns of play have changed since its inception, with a shift towards online games, and this change will help make sure the National Lottery, although already low-risk, is not a gateway to problem gambling.”
On the reasoning behind the impending government review, culture secretary Oliver Dowden said: “Whilst millions gamble responsibly, the Gambling Act is an analogue law in a digital age.
“From an era of having a flutter in a High Street bookmaker, casino, racecourse or seaside pier, the industry has evolved at breakneck speed.”