Julia Hornle, professor of internet law at Queen Mary University and co-author of the report, said existing regulations governing the gambling industry are out of date with modern-day media.
"Gambling advertising is restricted if it targets children. But what if the advertising targets adults, but is equally appealing to, and consumed by, children?
"It is also ignorant of the many and varied ways young people consume modern media, particularly online . . . The reality is that standards are not consistently applied to the internet and a fundamental rethink and redesign of regulation is required for advertising online.
"Many parents will have no idea that they're children are effectively at risk of a gambling habit. As is often the case with internet law, we are playing catch-up."