The newspaper said it learned the effort began in Toronto last year, and said Ottawa was apparently supportive of the idea.
Casinos in the border cities of Niagara Falls and Windsor now offer sports betting under a government lottery system in which players must select the outcomes of three or more sports contests.
Under the new bid, gamblers could bet on the outcomes of individual professional sports games, the report said.
In Ottawa, New Democratic Party Member of Parliament Joe Comartin, who represents the Windsor area, said the new plan would boost Windsor and Niagara Falls casino attendance from the United States, as it isn't allowed in New York or Michigan.
In Nevada, sports betting is licensed in 150 gaming houses, the report said.
The Canadian border casinos have experienced drops in attendance because of the stronger Canadian dollar and longer waits at border security crossing, the Star said.