Christian charity CARE is urging the government not to water down planned reforms to gambling laws.
The government had signalled its intention to ban betting adverts on football strips and impose a mandatory levy on gambling companies as part of wider reforms to the industry.
Money raised from the levy was supposed to fund research into the growing problem of gambling addiction.
The Daily Mail reported on Monday that these plans are now being shelved by ministers at the Department for Digital Culture, Media and Sport.
Ross Hendry, CEO of CARE, expressed alarm at the reports.
He said that current laws are "not fit for purpose" and are "failing people".
"Gambling addiction has grown exponentially in recent years. There are thought to be around 400,000 addicts in the UK, including 55,000 children," he said.
"Problem gambling causes huge harm to people, resulting in debt, depression, alcoholism, homelessness and even suicide.
"On average, one problem gambler commits suicide every single day. This is simply not acceptable. A compassionate society does not stand idly by and let this happen."
Research by CARE last year found that betting companies make up half of Premier League shirt sponsors, while a total of 19 clubs have some sort of partnership with betting firms.
Mr Hendry continued, "Ministers should know that in watering down reforms, they are failing in their duty of care for those who they serve.
"Their retreat from necessary action today will be see individuals suffer terribly who might otherwise not have suffered. We call on the government to reconsider the gambling levy and measures to curb betting ads in sport."
