The move comes less than four months after the new gambling law came into force, a law that introduced a licence system - requiring all gambling companies doing business here to have a licence.
The government-backed inquiry will look at possible limits that could be placed on the content as well as the amount of ads. It is expected to report back in October 2019.
Earlier this year, the Minister for Public Administration, Ardalan Shekarabi, who is also responsible for consumer affairs and gambling policy, demanded the industry come up with self-regulating rules that would remove what was called "aggressive gambling ads" from the market.
Shekarabi said he thought the solutions offered were insufficient, and explained at a press briefing on Wednesday why he now wants to go a step further.