The Gambling Related Harm All-Party Parliamentary Group (GRH APPG) has called for stake and deposit limits to be set at £2 ($2.60) for online slot games in its interim report.
Based on a six-month inquiry, the report finds no justification for online slot games to have higher stake limits than their land-based counterparts, urges the Government to ban the use of credit cards online and wants to restrict VIP accounts.
The group calls for online operators to sign its Charter for Regulatory Reform and signal their intention and support.
The report also described the Gambling Commission as "not fit for purpose" because the regulator did not address key issues in online stakes and prizes.
Carolyn Harris MP, Chair of the GRH APPG, said: "It is not at all clear why the Gambling Commission is not looking at this as a matter of urgency. It is an abdication of its responsibility as a regulator. There must be consistent and appropriate regulation of all forms of gambling.
"I also urge the Government to urgently review the provision of research, education and treatment in the sector. Gamble Aware are not effectively carrying out this function and it should immediately be brought into a public health setting."
Conclusions from the report also demand improved affordability checks, an improved approach to protecting children and the vulnerable and placing duty of care with operators.