British Columbia’s gambling regulator is standing against categorizing sports and entertainment prediction contracts in Canada as securities or derivatives.

The Independent Gambling Control Office (IGCO) released a statement, stating that products based on sports and entertainment outcomes are considered gambling and must be regulated as per the Criminal Code of Canada and provincial gaming laws.

New Guidance Around Prediction Markets

“The British Columbia Lottery Corporation (BCLC) is authorized to conduct and manage commercial gambling, including online gambling and sports betting, on behalf of the B.C. provincial government,” the statement noted.

IGCO supports the stance of the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) in their recent notice on prediction markets, excluding sports and entertainment.

Wealthsimple Begins Canadian Rollout

CIRO permitted Wealthsimple in March to offer event contracts related to financial market outcomes, economic indicators, and climate and weather outcomes.

Wealthsimple Predict is launching in Canada, offering access to almost 4,000 event contracts where pricing reflects the market’s prediction of the outcome likelihood.

“Prediction markets are growing rapidly in global financial markets, enabling traders to take positions on various factors. Canadians previously had limited access,” said Brett Huneycutt, Wealthsimple’s co-founder and chief product officer.

BCLC Retains Online Monopoly

U.S.-based prediction platforms like Polymarket, Coinbase, Novig, and Robinhood provide event contracts on sports and entertainment.

PlayNow.com by BCLC is the sole regulated online casino and sports betting platform in the province.

“Other online gambling websites allowing B.C. players access, including those offering event contracts related to sports and entertainment, are operating illegally in the province,” the statement emphasized.