While the United States’ policy towards online gambling is frequently a topic of concern amongst those in the Internet gambling industry, Canada’s gambling policy could be equally as problematic, at least for the Canadian parliament.

One problem, for example, lies in the proliferation of online gambling operations in different Canadian provinces in spite of the fact that gambling is illegal in the rest of the country. A report prepared for the Law Commission of Canada, an independent federal agency that advises Parliament on emerging legal issues, and written by a trio of researchers, cited as proof, the Mohawks in Kahnawake, Quebec who are allowed to run online gambling operations in spite of a police investigation and even though Internet gambling is illegal in the rest of the country. The proliferation of Internet gambling also has serious social and financial repercussions that are problematic. One of the authors of the report and a B.C. criminologist, Colin Campbell, said that tens of thousands of Canadians are addicted to gambling and they are turning to fraud and other crimes to support their habit. “Frauds, embezzlements … bad cheques, credit fraud … but police generally don't have an interest in digging below the surface of the crime to establish the root cause," said Campbell.” Moreover, Sol Boxenbaum, a Montreal-based consumer advocate, pointed out the financial loss caused by the Internet gambling sites. “Except for three provinces that are following the law, private companies are involved and billions of dollars are leaving our country, and are going to the United States, and going to the coffers of these national corporations”, Boxenbaum explained. Thus far, Canadian law only permits provinces and charities to legally operate gaming houses.

In the report, Campbell questions why gambling, which was once considered illegal throughout the country, is now a thirteen billion dollar industry and basically a mainstream industry, as well. “We think it's in Canada's national interest that the federal government sit down and re-examine the whole issue of gambling", Campbell concluded.

While the Canadian Parliament has already received the report, recommendations for how Canada should deal with Internet gambling and just what approach it should take are not due out until next year. This may or may not be a quick enough response for Boxenbaum who thinks the federal government should step in and take control of the situation. “I think gambling has gotten out of hand”, he said.