B.C. Regulator Draws Firm Line Against Sports Prediction Markets

British Columbia’s gambling regulator has joined the growing push against treating sports and entertainment prediction contracts in Canada as securities or derivatives. Wealthsimple has launched its prediction market trading app in Canada. (Image: Wealthsimple) According to a statement released by the Independent Gambling Control Office (IGCO), products based on sports and entertainment outcomes are considered gambling and therefore must be regulated in accordance with the Criminal Code of Canada and provincial gaming legislation. New Guidance Around Prediction Markets “The British Columbia Lottery Corporation (BCLC) is the only entity permitted to conduct and manage commercial gambling, including online gambling and sports betting, on behalf of the B.C. provincial government,” the statement read. IGCO supports the position taken by the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) in their joint notice issued Aug. 27, which provided new guidance around prediction markets, taking sports and entertainment off the table. Wealthsimple Begins Canadian Rollout CIRO announced in March that fintech platform Wealthsimple could offer event contracts tied to financial market outcomes, economic indicators (inflation, employment figures, central bank decisions) and climate and weather outcomes. Wealthsimple Predict is now being rolled out in Canada. The app is offering access to nearly 4,000 event contracts. A contract’s price reflects the market’s collective assessment of how likely that outcome is. “Prediction markets are the fastest-growing segment of global financial markets, letting traders turn an opinion into a position on the factors that shape our world – where inflation is headed, what happens to rates, or how the year unfolds. Until now, Canadians have had limited access,” said Brett Huneycutt, co-founder and chief product officer, Wealthsimple. BCLC Retains Online Monopoly Event contracts around sports and entertainment can be found on U.S.-based prediction platforms such as Polymarket, Coinbase, Novig and Robinhood. BCLC’s PlayNow.com is the only regulated commercial online casino and sports betting platform in the province. “All other online gambling websites that allow B.C. players to access their sites, including those that offer event contracts based on sports or entertainment outcomes, operate illegally in our province,” the statement read. The post B.C. Regulator Draws Firm Line Against Sports Prediction Markets appeared first on Casino.org.