Authors of a new research paper are calling for a public inquiry into Canada's $13-billion gambling industry, saying its widespread growth has led to serious social consequences.

Written by a trio of researchers, the report was prepared for the Law Commission of Canada, an independent federal agency that advises Parliament on emerging legal issues.

One of its authors, B.C. criminologist Colin Campbell, says tens of thousands of Canadians are addicted to gambling and that some are turning to crime to support their habit.

(AP file photo)

"Frauds, embezzlements ... bad checks, 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.

His report asks why gambling went from being considered illegal a generation ago, to a $13-billion, provincially run industry.

"There was very little opportunity for Canadians to have any kind of input on this historic transformation," said Campbell.

The report wonders why – despite a police investigation – Mohawks in Kahnawake, Que., are allowed to run online gambling operations when internet gambling remains illegal in the rest of the country.

Campbell also points out that Ontario's policy of hiring private American companies to run casinos may overstep the Criminal Code.

"We think it's in Canada's national interest that the federal government sit down and re-examine the whole issue of gambling," said Campbell.

Sol Boxenbaum, a Montreal-based consumer advocate, says he's complained for years that governments are ignoring laws that say only provinces and charities can legally run gaming houses.

"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," said Boxenbaum.

He says it's time Ottawa steps in and reviews the situation.

"I think gambling has gotten out of hand," he said. "The provinces have lost control and somehow the answer always seem to come back ... is that gambling is a provincial issue."

The Law Commission has just received the research paper and won't decide on final recommendations for Parliament until next year.