Canadian securities regulators have said sports and entertainment prediction market contracts should not fall under securities and derivatives legislation. The position was issued by the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO).
Only Wealthsimple and Interactive Brokers Canada currently offer prediction markets through brokerage accounts. Current rules permit contracts on financial markets, economic indicators and environmental forecasts. Sports, entertainment and election contracts are excluded. All instruments must settle after at least 30 days and trade through exchanges regulated by the U.S. Commodity Futures Trading Commission. Contracts on politics, geopolitics and crypto remain under review.
Wealthsimple has opposed the split. In a white paper dated 4 August, company lawyers Blair Wiley and Catherine De Giusti argued that separating a contract on a football match from one on inflation makes no sense — mechanically they are the same instrument. The firm believes bilateral bets with an operator setting odds belong under gambling regulators. Contracts traded through regulated derivatives exchanges should be governed by securities law.
The Canadian Gaming Association (CGA) backs provincial oversight of sports betting. Canada's Criminal Code gives provinces authority over gambling, including wagering. CGA president Paul Burns said sports betting remains betting regardless of platform and should be regulated under provincial gambling frameworks.
Fair Canada has warned of risks to retail investors. Executive director JP Bureaud called for proof of public benefit and protective measures before approving new contracts.
