Sports, entertainment prediction markets shouldn’t fall to securities law: CSA

If Canada ever wants to allow entertainment and sports prediction market trading, the country’s securities regulators are signalling someone else should have to police it.

The Canadian Securities Administrators says prediction market contracts based on sports and entertainment events should not be regulated within securities and derivatives legislation.

Prediction markets currently let customers make wagers of $1 or less on the outcome of real-world events like what will happen at the Bank of Canada’s next interest rate announcement or how many major Atlantic hurricanes there will be this year.

Wealthsimple and Interactive Brokers are the only Canadian platforms approved to offer prediction market trading, which is limited in Canada to economic, financial or climate matters.