TORONTO - An Ontario ombudsman investigation into unlicensed daycares has found lax rules that were "barely being enforced" in a system with legal loopholes.

The investigation was launched following the death of a two-year-old girl at a home daycare in Vaughan, Ont., north of Toronto last year.

Ombudsman Andre Marin says Eva Ravikovich was one of four children in the Greater Toronto Area to die in an unlicensed daycare in a seven-month period, but her death signalled "significant problems" when government officials weren't able to say how many complaints had been made about her facility.

He says his investigation found that the province "rarely and inconsistently enforces the few lax rules it has" for unlicensed daycares, with staff shying away from unannounced inspections.

Marin says his team found "alarming loopholes" that have allowed illegal daycares to operate "under the guise of private schools and so-called summer 'camps."'

He is not recommending that all daycares be licensed, but is urging the Ministry of Education to consider a centralized registry and tougher standards for the unlicensed sector.