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ARTICLE · 02 SEPTEMBER 2026

Speculation Or Security: Canada’s Evolving Regulatory Framework For Prediction Markets

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Canadian securities regulators have established a limited framework for prediction markets, restricting which event contracts can be offered to investors and under what conditions. While certain economic and financial forecasts may be traded through authorized dealers, contracts based on political events, sports, or entertainment remain prohibited, and compliance with securities law does not resolve potential exposure under criminal gambling provisions.

CanadaFinance and Banking
Andjela Sabet
Andjela Sabet
Anica Villamayor
Anica Villamayor
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On August 27, 2026, the Canadian Securities Administrators (the “CSA”) and the Canadian Investment Regulatory Organization (“CIRO”) published Joint CSA and CIRO Staff Notice 91-307 – Guidance related to Event Contracts: Compliance with Regulatory Requirements (the “Joint Notice”). The Joint Notice follows CIRO’s March 2026 bulletin on the Application of CIRO Requirements to Event Contracts (the “CIRO Bulletin”), which set out the specific terms and conditions under which CIRO’s investment dealer members (the “Dealer Members”) may offer Event Contracts (as defined below) to Canadian clients, as well as a published joint statement reminding industry participants and investors of the applicable requirements governing Event Contracts.

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