Canadian securities and investment regulators do not appear keen to allow the same sort of sports-led prediction market boom that has played out in the United States.
Staff of the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) issued a notice Thursday saying sports- and entertainment-related event contracts should not be regulated under securities and derivatives legislation.
While the regulatory staffers acknowledged that event contracts could meet the “broad definitions” of securities or derivatives, they don’t believe sports-related ones should be regulated as such.
“CSA staff’s view is that Event Contracts based on sports and entertainment events or outcomes should not be regulated within securities and derivatives legislation,” the notice said.
