The prediction market sector has surged in popularity in recent years, particularly among younger users, driven by platforms such as Polymarket.THEO MARIE-COURTOIS/AFP/Getty Images
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Canadian investors have been pushing to bring prediction markets to the country – a controversial type of trading that would allow legal betting on real-world events.
These platforms typically allow users to wager on the outcome of any type of event, from sports games to interest-rate decisions and geopolitical developments. The sector has surged in popularity in recent years, particularly among younger users, driven by platforms such as Polymarket and Kalshi.
Canadian regulators considering tighter rules on prediction markets
In the U.S., the industry is worth billions, but Canadian regulators have largely limited access to these platforms due to investor protection concerns. Despite that, Canadians have circumvented regulations by using virtual private networks to disguise their location online, allowing them to access U.S. trading platforms.
Recognizing the growing demand, some financial services companies, such as Wealthsimple, received approval to offer what are known as forecast contracts in Canada.
Retirement and financial planning reporter Meera Raman answered reader questions about the budding prediction market in Canada, how it could be rolled out and what impact it will make on investors in the country.
How do prediction markets work? What is the role of Canada’s regulating bodies? Can you really make money prediction trading? Read our responses now.