Prime Minister Julia Gillard will win the next election but Labor will lose eight seats, the punters predict.
The federal government's stocks have improved since Labor ditched Kevin Rudd last month in favour of his former deputy Ms Gillard.
But Centrebet still expects the government to lose eight seats at the next election but still enough to form a 10-seat majority.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
Under this scenario, Labor would hold 80 federal seats, compared with 67 for the coalition and three for the independents.
A redistribution has made five coalition-held seats notionally Labor, putting 88 electorates in the government's column.
A uniform swing of 1.5 per cent away from Labor would see the government lose eight seats, including the electorate of Bennelong held by high-profile television journalist turned MP Maxine McKew.
Disendorsed MP Belinda Neal's NSW central coast seat of Robertson would also fall to the coalition along with Perth electorate of Hasluck and the Darwin seat of Solomon.
Labor's odds of winning the next election have shortened to $1.29 with the coalition's odds now out at $3.50, following a $50,000 bet with Centrebet at the weekend.
This is the government's shortest odds of victory since December last year, when the Liberals dumped Malcolm Turnbull as leader for Tony Abbott.
Centrebet has temporarily suspended betting for an election date, with August 28 presently the favourite.
With Ms Gillard heading to Queensland, an election is unlikely to be called on Sunday for early August.
