Canadian Lotteries Call For Tighter Restrictions On Prediction Markets
Provincial lottery operators have called for clearer rules amid concerns that event contracts could compete directly with regulated sports betting products.
Canadian lottery operators are calling for tighter controls on prediction markets, arguing that some event contracts increasingly resemble traditional sports betting products and could compete with the country’s regulated gambling sector.
The Canadian Lottery Coalition (CLC), which represents provincial lottery operators, has urged authorities to establish clearer rules before prediction markets expand further across Canada. The intervention comes as the regulatory treatment of event contracts continues to attract scrutiny in both Canada and the United States.
Lottery Coalition Raises Sports Betting Concerns
The CLC argues that prediction markets could increasingly compete with regulated lottery and sports betting products, particularly if platforms expand their offering of contracts based on sporting events.
“We appreciate the further clarity, but I just feel like it’s too far to say that it’s a line in the sand. The time to act is now before they expand further in Canada,” the coalition said in comments reported by The Globe and Mail.
The debate follows guidance issued in August by the Canadian Investment Regulatory Organization (CIRO) and the Canadian Securities Administrators (CSA). The organisations stated that event contracts linked to sports results and entertainment outcomes should not be regulated as securities or derivatives.
Similar disputes have emerged across the United States, where state gaming regulators and attorneys general have challenged sports event contracts offered by prediction market platforms. Regulators in a number of states argue that these products amount to sports wagering and should therefore be subject to state gambling laws.
Kalshi Establishes Canadian Presence
The debate has intensified following Kalshi’s entry into Canada through a partnership with Toronto-based financial services company Wealthsimple.
Announced in June 2026, the partnership provides Canadian customers with access to approximately 4,000 event contracts through the Wealthsimple Predict platform. The current offering is focused on economic, financial and climate-related outcomes rather than sports.
Wealthsimple said the product was introduced in response to consumer demand for alternative investment and forecasting products. The company serves approximately four million Canadians and manages around CAD125 billion in assets.
Prediction markets have grown significantly internationally, with politics and sports among the most actively traded categories. Monthly industry trading volumes have reportedly surpassed $23.9 billion, while Bernstein analysts have previously forecast that the sector could reach $1 trillion in annual trading volume by 2030.
Polymarket Faces Canadian Restrictions
While Kalshi has established a presence through Wealthsimple, Polymarket has faced restrictions in several Canadian provinces.
The platform added Alberta, British Columbia and Quebec to its list of restricted Canadian jurisdictions in July. Ontario users were already prohibited from accessing Polymarket following an earlier settlement with the Ontario Securities Commission.
The regulatory debate extends beyond Canada, with prediction market operators including Kalshi and Polymarket facing disputes across multiple US states over whether sports-related contracts should fall under gambling regulation.
The CLC’s intervention adds the interests of Canada’s provincial lottery operators to that debate, with the coalition seeking action before sports-focused prediction markets are able to establish a larger presence in the country.
