Canadian regulators – here the CSA (Canadian Securities Administrators) and CIRO (Canadian Investment Regulatory Organization) have clarified their position on prediction markets. The Canada prediction markets guidance covers event contracts linked to sports and entertainment.

• Sports and entertainment event contracts should not fall under Canadian securities and derivatives laws, according to the CSA. CIRO also does not plan to approve dealer members to trade these contracts. This separates them from contracts that may qualify as securities or derivatives.
• Other event contracts are still being reviewed. Two CIRO dealer members can already offer a limited range of event contracts under specific conditions. The regulators did not name the two firms.
• The Canada prediction markets guidance does not apply to every type of prediction contract. Contracts that qualify as securities or derivatives remain subject to the relevant rules. CSA Chair Stan Magidson said the notice provides “important clarifications” on the role of Canadian securities regulators.

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