British Columbia’s Independent Gambling Control Office (IGCO) has clarified its position on prediction markets following new guidance from Canada’s securities regulators. The provincial gambling regulator says contracts based on sports and entertainment outcomes qualify as gambling under British Columbia law and must comply with the province’s gambling framework.
The statement followed an August 27 notice from the Canadian Securities Administrators (CSA) and Canadian Investment Regulatory Organization (CIRO). Their guidance addresses products commonly described as event contracts, prediction contracts or prediction market contracts. The regulators said sports and entertainment event contracts should not be regulated under securities and derivatives legislation.
For British Columbia, that classification does not make such products legal. The IGCO said provincial legislation treats contracts based on sports or entertainment outcomes as gambling. Those products therefore fall under the Criminal Code of Canada and provincial gaming legislation.
The distinction has become relevant as prediction markets such as Polymarket and Kalshi have expanded their presence and attracted attention for offering contracts tied to different future outcomes. The products can cover subjects including sporting events and elections, alongside other types of events.
Federal Guidance Draws a Regulatory Boundary
Staff Notice 91-307 sets out the CSA’s view that sports and entertainment event contracts should sit outside securities and derivatives legislation. CIRO likewise said it does not consider it appropriate for its dealer members to facilitate or seek approval to trade these contracts.
“It is important for investors and market participants to understand that event contracts based on sports- or entertainment-related activities or outcomes should not be regulated within securities and derivatives legislation,” said Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission. “This notice provides important clarifications regarding the role and responsibility of Canadian securities regulators when it comes to certain types of event contracts.”
The regulators have left the status of other event contracts under review. Their notice states that assessment remains ongoing for categories outside the sports and entertainment contracts covered by the latest guidance.
The current framework also allows two CIRO dealer members to facilitate trading in a limited range of event contracts. Those firms must operate under conditions established by CIRO in consultation with the CSA. The regulators said those conditions could face further restrictions or changes.
Anyone trading or facilitating event contracts that qualify as securities or derivatives remains subject to the applicable Canadian securities and derivatives requirements.
The guidance therefore addresses the securities-law treatment of specific prediction contracts while leaving provincial gambling authorities to apply their own gambling legislation where relevant.
PlayNow.com Holds the Provincial Authorization
The IGCO said in a press release that British Columbia’s gambling system gives the British Columbia Lottery Corporation (BCLC) authority to conduct and manage commercial gambling on behalf of the provincial government. That includes online gambling and sports betting.
BCLC’s PlayNow.com is currently the only regulated commercial online gambling website permitted to operate in British Columbia. The platform is required to meet provincial standards covering technical integrity, age verification, responsible gambling, advertising and marketing.
The IGCO has advised British Columbia residents to use PlayNow.com for regulated online gambling. It said other online gambling websites that accept players from the province operate illegally, including sites offering sports or entertainment event contracts.
That position means the absence of securities or derivatives regulation does not create an alternative legal route for commercial gambling in British Columbia. The province continues to apply its gambling legislation to products it considers gambling.
The IGCO’s statement also places responsibility for gambling regulation within the existing provincial system. Its mandate covers gambling in British Columbia, including commercial gambling and oversight of BCLC.
Other Prediction Contracts Remain Under Review
The August 27 federal notice does not settle the regulatory status of every prediction market product. CSA and CIRO said they are continuing to assess event contracts that fall outside the categories covered by the guidance.
The regulators have previously allowed a limited framework for certain event contracts through CIRO dealer members. Their existing requirements restrict the activities that authorized firms can facilitate, while the agencies continue reviewing those conditions.
For British Columbia, however, the immediate issue is clearer. The IGCO considers sports and entertainment outcome contracts gambling under current provincial legislation. Companies offering such products to people in the province therefore cannot rely on their classification outside securities and derivatives rules as authorization to operate.
The regulator’s clarification comes one day after the federal guidance was published and reinforces the separate roles of Canada’s securities and gambling authorities. The CSA and CIRO have addressed whether certain event contracts belong within securities and derivatives regulation, while the IGCO has stated how British Columbia’s gambling laws apply to sports and entertainment outcomes.
Residents seeking regulated online gambling in the province have been directed to PlayNow.com. The IGCO has also provided its website as a source of further information about British Columbia’s gambling rules and its regulatory responsibilities.