Canada imposes strict limits on sports prediction markets

Canada's investment regulator CIRO has tightened restrictions on prediction markets. Under the newly published terms, investment dealers will no longer be able to process contracts based on sports and entertainment events, and they will not be able to offer these products to clients.

CIRO published the updated terms on October 16, 2026. The regulation builds on joint guidance prepared with the Canadian Securities Administrators in August. The new rules also cover dealers connected to international prediction exchanges.

The regulator says that displaying products clients cannot trade could create confusion about which services are approved. For that reason, advertising and promotion are also restricted. Dealers may not promote prohibited contracts and may not show untradeable products to Canadian clients.

In Canada, permitted contracts are limited to economic, financial and environmental forecasts. These contracts must have a settlement period of at least 30 days and may not use leverage. Currently, only two firms in Canada are authorized to offer this service.