Canadian Regulators Say Sports Prediction Markets Aren't Securities or Derivatives

Last Thursday, the Canadian Securities Administrators and the Canadian Investment Regulatory Organization stated that sports and entertainment event contracts should not be treated as, or regulated as, derivatives or securities. 

“It is important for investors and market participants to understand that event contracts based on sports- or entertainment-related activities or outcomes should not be regulated within securities and derivatives legislation,” said Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission. “This notice provides important clarifications regarding the role and responsibility of Canadian securities regulators when it comes to certain types of event contracts.”

As for all other contracts not mentioned, aside from sports and entertainment, those assessments are "ongoing." 

Right now, two CIRO dealer members have been "authorized to facilitate the trading of a limited set of event contracts," per the release. 

Canada Clarifies Regulatory Treatment of Event Contracts

Canada had, up until recently, only offered legal online sports betting in Ontario and provincial lotteries. Ontario sports betting went live in 2022, with single-game sports betting involving the lotteries coming just a year before that. 

Then, in July 2026, regulated Alberta sports betting and casino play launched. 

Prediction markets are a bit of a grey area, but Canada has seemingly, as seen above, come out against them. 

Canada Takes Different Approach Than United States

While the CIRO has said these don't fall within the scope of securities and derivatives, the conversation in the United States is different; the debate is really over who gets to regulate them. 

Should it be state gambling laws, or is the Commodity Futures Trading Commission enough? 

This battle will rage on for quite a while in the States. In Canada, they've made up their minds before any back-and-forth can happen.

For more information on the CIRO, here's what the release referred to the entity as: 

"The Canadian Investment Regulatory Organization (CIRO) is the pan-Canadian self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada’s debt and equity marketplaces. CIRO is committed to protecting investors, providing efficient and consistent regulation, and building Canadians’ trust in financial regulation and in the people managing their investments. For more information, visit www.ciro.ca."