The Canadian Securities Administrators and the Canadian Investment Regulatory Organization issued joint guidance stating that event contracts based on sports or entertainment activities or outcomes should not be regulated under securities and derivatives legislation. CIRO also does not consider it appropriate to facilitate or approve applications from dealer members seeking to trade these contracts. The regulatory status of other event contracts remains under assessment. Two CIRO dealer members are currently authorized to facilitate trading in a limited set of event contracts, subject to conditions that may be tightened or otherwise changed. Trading or facilitating event contracts that qualify as securities or derivatives remains subject to applicable legislation.
2026-08-27Canadian Securities Administrators
Canadian Securities Administrators and Canadian Investment Regulatory Organization clarify treatment of sports and entertainment prediction markets
The Canadian Securities Administrators and the Canadian Investment Regulatory Organization clarified that sports and entertainment event contracts should fall outside securities and derivatives regulation, and CIRO does not consider dealer-member trading applications for such contracts appropriate. Other event contracts remain under assessment, while authorized trading in contracts that are securities or derivatives continues to face applicable requirements and CIRO conditions.