Prediction markets have seen a rise in activity across Canada; nevertheless, they are subject to stringent regulation by the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization. Offshore platforms, including Polymarket, are prohibited and Polymarket was fined by the Ontario Securities Commission (OSC) in 2025. In 2017, the CSA imposed a ban on short-term binary options (contracts of less than 30 days or simple “yes”/“no” questions).
Companies may apply to Canadian securities regulators for national approval to operate prediction markets; however, provincial and territorial regulators like the OSC maintain authority to restrict operations within their jurisdictions as deemed necessary. Wealthsimple, an online financial services provider, is pursuing entry into the Canadian prediction trading market, and has obtained approval from the Canadian Investment Regulatory Organization to offer forecast contracts related to economic indicators, financial markets, and climate trends—not sports or elections, which are among the most prevalent uses of prediction markets in the United States.
In Ontario, the Alcohol and Gaming Commission of Ontario (AGCO) collaborates closely with the OSC and has established that any contracts involving sports constitute gambling, which falls under AGCO regulation.
However: flyers advertising Polymarket were distributed outside the Rogers Centre during the Toronto Blue Jays’ home opener weekend, despite an existing ban on both Polymarket and its marketing efforts within the province. The promotional materials offered recipients a free $20 incentive via a promotional code, encouraging them to scan a QR code to “place a trade on today’s game.” This QR code directed users to download the Polymarket application but the app is currently unavailable in Canada.
As a result of this incident, Polymarket has once again attracted scrutiny from the OSC and it remains to be seen whether further penalties will be imposed on the company.
The Canadian Gaming Association endorses the authority of provincial securities commissions to decide whether this activity suits their province. It also recognizes the role of regulators such as AGCO, AGLC, and other crown corporations in setting and maintaining standards for sports betting.