Blue Jays slugger Vladimir Guerrero Jr. hits a grand slam against the New York Yankees in Toronto in October, 2025. Flyers promoting Polymarket were recently handed out outside a Jays game despite a ban on the company in Ontario.Sammy Kogan/The Globe and Mail
Canadian securities regulators say they are considering whether further action is needed to oversee prediction markets in the country, as questions grow over what is allowed and how the controversial products are being promoted.
In a notice released Thursday, the Canadian Securities Administrators and the Canadian Investment Regulatory Organization said they plan to issue further guidance on how securities and derivatives legislation apply to the fast-growing area of prediction market trading.
The notice comes on the same day The Globe and Mail reported that flyers promoting U.S.-based platform Polymarket were handed out in Toronto, despite a ban on the company and its advertising in the province.
“Due to regulators’ ongoing concerns around prediction markets, the CSA and CIRO will also consider whether other regulatory action is required,” the notice said.
The notice highlights regulators’ attempt to draw clearer rules for Canada’s burgeoning prediction market space.
Prediction markets allow users to wager on the outcome of real-world events, from sports games to interest-rate decisions. The controversial sector has grown quickly in recent years, driven by platforms such as Polymarket and Kalshi, but Canadian regulators have largely restricted access, citing investor protection concerns.
Under current rules, anyone trading or facilitating trades in event contracts must comply with securities and derivatives laws, including registration or recognition requirements. The CSA’s 2017 decision to ban short-term “yes-or-no” contracts, known as binary options, still largely forms the basis of Canada’s approach.
Canada has begun to cautiously open the door to limited forms of prediction trading. CIRO said in a March 26 bulletin that only two of its members have been authorized to offer event contracts. The Globe recently reported that online financial services firm Wealthsimple received approval to offer forecast contracts, joining Interactive Brokers.
That approval comes with strict limits. Firms can only offer contracts tied to economic indicators, financial markets and climate trends, not sports or elections, which are among the most popular types of contracts in the United States.
In the bulletin, it said that regulators “intend to issue further guidance which could result in the imposition of further restrictions.”
In 2025, the Ontario Securities Commission cracked down on Polymarket after it operated in the province for three years. The OSC reached a settlement with the operators of Polymarket, prohibiting the company from “marketing or engaging in promotional activities at events that take place in Ontario.”
In response to The Globe’s request for comment on flyers advertising Polymarket, the OSC previously said, “While we cannot discuss what we do with the information we are provided, it is taken very seriously by the commission,” spokesperson Debra Chan said.
“Failure to comply with applicable requirements under Canadian securities and derivatives laws may lead to enforcement action,” the notice said.