Sports, entertainment prediction markets shouldn't fall to securities law: CSA
The guidance limits regulated dealer platforms to economic, financial and climate contracts as Canada’s prediction market debate continues.
- The Canadian Securities Administrators and the Canadian Investment Regulatory Organization clarified on Thursday that sports and entertainment prediction contracts fall outside securities legislation and will not be authorized for investment dealers.
- Currently, CIRO-approved dealers like Wealthsimple Inc. and Interactive Brokers Group Inc. may only offer event contracts linked to economic indicators, financial markets, and climate trends, prohibited from facilitating wagers on sports or entertainment outcomes.
- In the United States, sports contracts accounted for 80 per cent of trading volume on Kalshi between July 2024 and May 2026; Wealthsimple recently argued that separating sports outcomes into gaming regulation is 'unworkable.'
- If Canada wants to allow sports prediction trading, regulators signaled someone else must police it, as the CSA and CIRO clarified they do not consider it appropriate to facilitate dealer applications for such contracts.
- The regulatory status of other non-entertainment and sports event contracts remains under assessment; meanwhile, U.S. lawmakers introduced the Prediction Markets Are Gambling Act this March, seeking to bar platforms like Kalshi and Polymarket from offering sporting event contracts.
15 Articles
15 Articles
The Toronto Star
Sports, entertainment prediction markets shouldn’t fall to securities law: CSA
If Canada ever wants to allow entertainment and sports prediction market trading, the country's securities regulators are signalling someone else should have to police it.
Winnipeg Free Press
Sports, entertainment prediction markets shouldn't fall to securities law: CSA
If Canada ever wants to allow entertainment and sports prediction market trading, the country's securities regulators are signalling someone else should have to police it.
Regulators have stated that such contracts are not subject to the law of the world of sport.ua
Who should regulate prediction markets in Canada?
If Canada ever wants to allow entertainment and sports prediction market trading, the country’s securities regulators are signalling someone else should police it. The Canadian Securities Administrators said Thursday that prediction market contracts based on sports and entertainment events should not be regulated within securities and derivatives legislation. Prediction markets currently let customers make wagers of $1 or less on the outcome of …
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