A six-month inquiry led by the Gambling Related Harm All-Party Parliamentary Group (GRH APPG) claimed the regulator failed to address key industry issues relating to online stakes and prizes.
The report also claimed inaction from the Commission allows the industry to “prey on vulnerable gamblers.”
A spokesperson for the Gambling Commission said: “The report does not reflect our considerable action and progress on most of the areas of concern set out in the report and we look forward to being given the chance to outline that work to the GRH APPG.
“We constantly look for ways to make our regulatory approach more effective, ensuring that it keeps up with changes in technology and consumer behaviour, that we remain fit for purpose and continue to effectively respond to emerging issues and risks."
The statement goes on to describe the work taking place at the Gambling Commission, including a compliance review of 123 online operators, tough enforcement against companies that break rules and its strategy for reducing gambling harms.
The Commission concluded its response by saying it looks forward to ensuring the GRH APPG fully understands its programme of regulation.