Published on: April 7, 2026, 10:10 AM.

Updated on: April 7, 2026, 10:11 AM.

• CSA and CIRO in Canada remind investors and businesses of existing regulations concerning prediction markets
• Wealthsimple received regulatory clearance to launch event contracts in late March
• Ontario’s Polymarket ban is set to continue until 2027

As the U.S. market grapples with a multi-state legal struggle involving prediction market operators like Kalshi and Polymarket alongside various state authorities, Canadian financial regulators have issued a firm reminder regarding Canada’s strict regulations governing prediction market activities.

Ontario’s Ban

Prediction markets are platforms that allow users to trade event contracts based on the outcomes of future occurrences.

This advisory was released by the Canadian Securities Administrators (CSA) along with the Canadian Investment Regulatory Organization (CIRO).

“Individuals involved in trading or enabling trading in event contracts classified as securities or derivatives must adhere to relevant requirements stipulated under securities or derivatives legislation. This includes registration or recognition obligations,” the statement specified.

“For example, in certain CSA jurisdictions, Multilateral Instrument 91-102 Prohibition of Binary Options restricts any individual from advertising, offering, selling, or otherwise trading a binary option that has a maturity term of less than 30 days, whether directed at an individual or otherwise.”

Wealthsimple Receives Regulatory Clearance

“Failure to adhere to applicable Canadian securities and derivatives laws could result in enforcement actions,” concluded the joint communication.

The CSA acts as an umbrella organization that unifies the provincial and territorial securities regulators in Canada to create coherent regulations throughout the country’s capital markets. CIRO serves as the national self-regulatory body overseeing investment dealers, mutual fund dealers, and trading activities within Canadian debt and equity markets.

Last week, CIRO announced its approval for Wealthsimple to initiate prediction market trading for various events.

No Contracts for Sports Events

This news was significant, especially following the dominant headlines from April 2025 when the Ontario Securities Commission reached a settlement with Polymarket, prohibiting the prediction market from operating in the province for two years, until 2027. Polymarket had been active in Ontario from June 2020 until May 2023, before regulatory action was taken. As part of their settlement, Polymarket was fined $200,000.

However, 2027 is approaching quickly. CIRO’s announcement included strict limitations – Wealthsimple, as an Investment Dealer Member of CIRO, will be allowed to offer event contracts pertaining to economic predictions, covering topics like labor market statistics, housing trends, and central bank reserve rates, as well as environmental forecasts and financial indicators.

There will be no “Yes” or “No” contracts regarding political or sports events, such as whether the Toronto Maple Leafs will dismiss their head coach at the end of the season. The surge in popularity for Kalshi and Polymarket in the U.S. is partly due to the appeal of betting “yes” or “no” on sporting events, circumventing state licensing and regulations concerning sports betting, which is central to the ongoing legal conflicts.

Polymarket Promotions

A Wealthsimple spokesperson mentioned that the company has not yet revealed any product plans. The CIRO announcement merely confirmed their regulatory approval.

Interactive Brokers Canada Inc. stands as the only other CIRO Investment Dealer Member authorized to facilitate trading in event contracts.

As part of their agreement with the OSC, Polymarket is prohibited from promoting its services within the province. Recently, however, flyers for Polymarket were seen distributed outside a Toronto Blue Jays game near the Rogers Centre. Reports from the Globe and Mail indicate that a representative for the Jays stated the organization was unaware of the flyer distribution. The flyers touted Polymarket as an official partner of Major League Baseball and offered individuals $20 to gamble utilizing a Blue Jays promotional code.

$200,000 Penalty

Beyond Ontario, the circumstances become somewhat murky as individuals can access U.S. predictions via VPNs. However, residents within the province cannot place bets on Polymarket, although they can access event contracts online.

“CIRO dealer members facilitating trading of event contracts must comply with specific terms and conditions outlined by CIRO, in collaboration with CSA members, which dictate the kinds of products that can be offered to Canadian clients and the manner in which these products can be traded. The CSA and CIRO are continuously evaluating these terms and conditions, which remain subject to modification for these dealer members and others in the future,” the combined statement from the CSA and CIRO further explained.