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Under-18s will be banned from playing the National Lottery from next year, as the minimum age rises from 16 to 18.
This follows the launch of a major review of gambling laws to protect children and vulnerable people, led by Culture Secretary Oliver Dowden.
Mr Dowden says the industry has grown 'at breakneck speed' and he hopes the review allows those who enjoy placing a bet to do so safely.
The new rules will come into effect from October 2021, while online sales to 16 and 17-year-olds are due to halt sooner from April, according to the Department for Digital, Culture, Media and Sport (DCMS).
Nigel Huddleston, minister for sport, tourism and heritage, said the new restrictions will help ensure that lottery is not a 'gateway to problem gambling' - especially with the growth in online gaming.
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The planned changes hope to address a balance between the enjoyment factor of gambling for some against the 'right regulatory framework and protections', according to the DCMS.
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Extra measures that will be looked at include limits on stake and spend, marketing, online restrictions and whether additional protections for young adults will be needed, the DCMS added.
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The impact of the Gambling Commission will also be considered as part of a call for evidence looking at how the industry has evolved over the past 15 years.
The review will examine the process for customers who feel companies have breached social responsibility requirements - including interventions - and how to ensure young people are kept safe from gambling-related harms.
Credit free mega888. Mr 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.
'This comprehensive review will ensure we are tackling problem gambling in all its forms to protect children and vulnerable people. It will also help those who enjoy placing a bet to do so safely.
He added: 'This builds upon our clear track record of introducing tough measures to protect people from the risk of gambling harm - banning the use of credit cards, launching tighter age verification checks and cutting the maximum stake on fixed odds betting terminals.'
A spokeswoman for Camelot - the National Lottery operator - said they 'fully support the government's decision to raise the playing age.
She added that the company has 'already started' to prepare for the changes, and will work to implement them 'as quickly as possible'.
Michael Dugher, chief executive of the Betting and Gaming Council, also said they 'strongly welcome' the review and upcoming changes, but hope that the government's changes does not 'drive people to the unregulated black market online'.
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He also wants the review to take into account 'the huge economic contribution made by the betting and gaming industry' - which he said employs over 100,000 people.