As a result of physical distancing measures designed to contain the virus, casinos, pubs and clubs have been forced to close.

Finance Minister Michael Ferguson said the Future Gaming Markets policy would be advanced "when the time is right".

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"Now is not the time to progress the government's Future Gaming Markets policy," he said.

"The gaming sector along with the entire tourism and hospitality sector is hurting as state and federal governments close venues as they respond to the COVID-19 threat.

"We acknowledge the contribution made by these sectors and their employees and are mindful of the impact venue closures [are] having on their lives and livelihoods."

The legislation had been subject to a consultation process. The deadline for public submissions was March 18.

The policy seeks to end Federal Group's monopoly on the state's gaming industry, with the 2003 Deed of Agreement - which gave the company exclusive rights to operate casino gaming, poker machines and Keno games - set to expire in 2023.

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"The government remains committed to reforming gaming in Tasmania, ending the monopoly and ensuring a sustainable industry, which provides choice, minimises harm and provides an appropriate return to government to fund essential services," Mr Ferguson said.

Individual venues would apply for licences to operate pokies and Federal Group would retain its two casino licences for a period of up to 20 years and continue to operate Keno in the state.

The proposed legislation has proved controversial in some quarters.

Most notable among its detractors are the Greens, independent Nelson MLC Meg Webb and independent Clark MHR Andrew Wilkie.

Some of the criticisms of the policy include its lack of a commitment to change the harm reduction framework for problem gambling and an absence of clarity on how the government intends to respond to Federal Group's push for tax cuts for its casinos.

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