Canada Implements Stricter Regulations on Sports Betting Markets

Canada’s investment regulator has tightened regulations surrounding prediction markets by banning sports and entertainment contracts while mandating that brokers conceal unauthorized options. The Canadian Investment Regulatory Organization (CIRO) released the revised mandates on October 16, 2026, expanding upon joint guidance previously released in August alongside the Canadian Securities Administrators (CSA).

These modifications impact companies that provide event contracts via Canadian investment accounts, such as brokerages linked to global prediction exchanges. According to CIRO, showcasing products that users are ineligible to trade risks generating confusion regarding which services have received regulatory approval.

Brokers Must Hide Prohibited Markets

Under CIRO’s updated guidelines, investment dealer members are barred from engaging in or facilitating event contracts centered on sports and entertainment. Prior restrictions only implicitly excluded these categories by restricting permitted markets strictly to economic, financial, and environmental forecasts.

Furthermore, the updated framework addresses marketing and visibility. Brokerages are prohibited from promoting unauthorized contracts or displaying them to Canadian users if those specific products cannot be traded. CIRO cautioned that showing such items could deceive consumers concerning legitimate services and weaken regulatory enforcement.

The regulator also established a broad definition for event contracts, encompassing items labeled as event contracts, prediction contracts, prediction market contracts, or forecast contracts. This phrasing ensures the regulations apply based on a product’s operational function rather than corporate terminology.

Back in August, the Canadian Gaming Association applauded the differentiation separating financial-market products from gambling-like alternatives. The organization stated: “CSA and CIRO have drawn a clear and sensible line: the distinction between a sports contract and a sports bet should not be reduced to semantics.”

Only Selected Markets Qualify

CIRO allows specific event contracts linked to financial indicators, economic statistics, and environmental metrics, provided certain criteria are met. Such requirements entail a minimum 30-day resolution timeframe and a prohibition on leverage. Furthermore, outcomes must rely on objective parameters.

Presently, merely two companies possess authorization to supply event contracts within Canada: Interactive Brokers Canada alongside Wealthsimple. Interactive Brokers launched its product suite in April 2025 via ForecastEx, a CFTC-regulated exchange owned by the firm.

Subsequently, Wealthsimple debuted its Predict platform to distribute chosen Kalshi contracts. Unlike Kalshi’s more expansive U.S. catalog, Wealthsimple’s Canadian version omits sports and entertainment markets entirely.

Due to the updated interface criteria, approved brokerages are required to evaluate contracts prior to presenting them to Canadian clients. Merely disabling a transaction is inadequate if an ineligible market stays accessible via product feeds, search functions, or marketing collateral.

Wider Oversight Remains Possible

Additional entities have requested authorization to provide event contracts. Both CIRO and the CSA indicated they will maintain surveillance over the sector and might supply additional directives or enact further limitations.

Global platforms lacking CIRO affiliation lack authorization to deliver prediction markets in Canada within this regulatory structure. Polymarket—currently serving a two-year ban in Ontario that concludes next April—has stated it restricted access across multiple provinces. Even so, reports have highlighted that Canadian participants are capable of trading on the site within specific regions, covering subjects like Canadian elections that remain absent from CIRO-sanctioned dealers.

These refreshed guidelines place a heavier obligation on certified brokers to monitor both the visibility and trading availability for Canadian clientele.

“Canadian regulators tighten prediction markets rules, explicitly ban sports event contracts”, canadiangamingbusiness.com, October 21, 2026

Frequently Asked Questions

When were the updated prediction market requirements published by CIRO?

CIRO published the updated requirements on October 16, 2026, following joint guidance issued with the Canadian Securities Administrators in August.

Which firms are currently approved to offer event contracts in Canada?

Only two firms have received approval: Interactive Brokers Canada and Wealthsimple.

Are sports and entertainment prediction contracts allowed under the new rules?

No, CIRO has explicitly prohibited investment dealer members from trading or facilitating sports and entertainment event contracts, and brokers must hide these prohibited markets from Canadian clients.

What conditions apply to the event contracts that are permitted?

Permitted event contracts must be tied to financial indicators, economic data, or environmental measurements, feature a minimum resolution period of 30 days, ban leverage, and rely on an objective basis for determining outcomes.