Betting on the Future: How Prediction Markets Are Changing Everything

Recently, the Canadian Investment Regulatory Organization (“CIRO”) approved Wealthsimple to offer forecast contracts. Forecast contracts are investment products that offer investors binary “yes” or “no” options, which are tied to future events. The CIRO approval — which is currently limited to contracts based on economic indicators, financial markets and climate trends — indicates the broader prevalence of prediction markets, an increasingly popular form of event-based wagering.

Prediction markets are online, open-market trading platforms, which have seen a massive spike in usage over the past year. The platforms, which allow users to trade bets in areas such as sports, politics and pop culture events, enable a unique form of gambling that poses new issues from a regulatory perspective. Though Canada has yet to offer broad permission for prediction markets, the Wealthsimple approval may indicate a willingness to do so.

Despite its approval, Wealthsimple has yet to release any prediction market-related offerings, and the trajectory of prediction markets in Canada remains unclear. As regulators begin to consider event-based contracts, and consumer demand continues to grow, these platforms are likely to play a meaningful role in shaping Canada’s online gaming landscape in the years to come. With this in mind, CIRO is remaining cautious and has yet to offer extensive approval to companies like Kalshi and Polymarket.

As the line between financial instruments and gambling continues to blur, policymakers will need to grapple with how best to regulate these hybrid platforms. If current trends persist, prediction markets are poised to become a significant feature of Canada’s evolving gaming economy.

Author: Jon Toker, 2026 Summer Law Student