A new regulator will be created by the Irish government with powers to impose fines, issue licenses and address previously unregulated areas such as spread betting.
An intergovernmental report suggests fines of up to €50,000 ($56,751) should be levied for breaches in legislation and the move has been welcomed by politicians and industry groups alike.
The Irish Bookmakers Association said it wanted to see the operation up and running as soon as possible, while Problem Gamblers of Ireland said it would be delighted to see a new regulatory body.
Minister of State David Stanton spoke after briefing the Cabinet on the measures. He is quoted as saying by RTE: "The Government has made a major commitment to the modernisation of our licensing and regulatory environment for gambling.
"It will require resources. However, the ultimate aim is that the regulatory authority will be self-financing through fees and levies imposed on licensed gambling operators."