Canadian regulators exclude sports prediction markets from securities oversight

Canadian financial regulators have issued joint guidance clarifying that prediction markets tied to sports and entertainment outcomes do not fall under securities or derivatives legislation. The Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) stated that these event contracts should not be regulated as financial products.

As a result of this guidance, CIRO indicated it will not facilitate or approve applications from its dealer members to trade these specific types of contracts. Stan Magidson, CSA Chair and CEO of the Alberta Securities Commission, emphasized that the notice provides essential clarity regarding the boundaries of securities regulation.

The Canadian Gaming Association (CGA) has expressed support for the decision, maintaining that sports wagering should remain under the oversight of provincial gaming regulatory systems rather than financial regulators.