The Canadian Securities Administrators, an umbrella organization for provincial securities regulators, released a notice saying registered dealers can’t let customers place bets on the outcome of sports or entertainment events through prediction markets because such contracts are outside the regulators’ scope. (The Logic)

Talking point: Whether sports betting on prediction markets should be regulated as gambling or investing is a hot button issue. Prediction markets operators are fighting 20 U.S. states in court over allegations they’re running illegal sports betting operations. The stakes are high, since sports bets accounted for 80 per cent of trading volume on prediction markets site Kalshi since July 2024. Canadian securities regulators keep prediction markets on a tight leash, only allowing bets on economic indicators, financial markets and climate trends. Wealthsimple, which recently launched a prediction markets app, has said it believes sporting event contracts are securities and that handing oversight of only that slice of prediction markets to gambling regulators would be “unworkable.” 

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