Are Prediction Markets Legal in Canada?
Last updated: April 2026 · Independent guide for Canada investors
Written by Stephan Kulik
Editor-in-Chief, PredictorHQ
Written for Canada investors by Stephan Kulik, editor-in-chief of PredictorHQ. General information on prediction-market legality — not legal advice.
Last updated: · LinkedIn
Prediction market legality in Canada sits at an unresolved intersection of federal securities law, provincial gambling regulation, and the gray-market access enabled by crypto wallets. Here is what Canadian investors actually need to know in 2026.
Bill C-218 and the 2021 sports betting legalization
Bill C-218 (Safe and Regulated Sports Betting Act) decriminalized single-event sports betting in Canada in August 2021. This shifted authority over sports betting to the provinces, which now license operators (e.g. Ontario's iGaming Ontario regime). It did NOT authorize prediction markets on political or economic events, which remain in regulatory ambiguity.
CIRO and OSC roles
The Canadian Investment Regulatory Organization (CIRO) oversees investment dealers and marketplaces. The Ontario Securities Commission (OSC) and provincial securities commissions regulate securities. This is now an active pathway: in April 2025 Interactive Brokers Canada became the first CIRO-registered dealer to offer forecast (event) contracts to Canadians, via the CFTC-regulated ForecastEx, and in 2026 Wealthsimple launched its CIRO-approved Predict app giving access to Kalshi contracts. Both are restricted to economic, financial-market, and climate categories — sports and elections are excluded under the CIRO-approved model.
Provincial Crown corporations and Proline+
Provincial lottery corporations run the only fully legal Canadian sports-event products, each under its own brand — OLG's PROLINE+ (Ontario), Loto-Québec's Mise-o-jeu+ (Quebec), the Western Canada Lottery Corporation's Sport Select (Alberta, Saskatchewan, Manitoba, and the territories), BCLC's PlayNow (British Columbia), and ALC's Pro-Line (Atlantic). Coverage is limited to sports and a small set of events. No political markets, no economic indicators.
Gray-market reality: Polymarket and global crypto platforms
Polymarket and other crypto-settled prediction markets are accessible to Canadians via wallet, but no Canadian regulator has authorized them. Using these platforms is not explicitly criminalized for individual users, but the platforms themselves operate without Canadian approval. The CRA still expects gains to be reported.
Practical risk assessment
For most Canadian retail users, the practical risk of using gray-market prediction markets is limited to (1) the platform being blocked or losing access, (2) tax non-compliance penalties from the CRA, and (3) potential fraud or counterparty risk. There is no enforcement history of individual prosecution for using unauthorized prediction markets.
Important
This guide is general information and does not constitute legal advice. Prediction market regulation in Canada continues to evolve. Consult a qualified lawyer for advice specific to your situation.