British Columbia’s gambling regulator has confirmed that prediction market contracts linked to sports and entertainment outcomes are considered gambling, rather than financial products. The decision places these activities under Canada’s Criminal Code. Moreover, it places them under provincial gaming laws.
IGCO Clarifies Prediction Market Rules
The Independent Gambling Control Office (IGCO) issued its position after the Canadian Securities Administrators (CSA) and Canadian Investment Regulatory Organization (CIRO) stated that sports and entertainment-based event contracts should not be regulated as securities or derivatives.
IGCO said it supports the position. It reminded residents that British Columbia Lottery Corporation (BCLC) is the only organization authorized to conduct and manage gambling in the province.
PlayNow.com Remains Sole Legal Online Platform
BCLC’s PlayNow.com remains the only regulated online gambling platform permitted to operate in British Columbia. The site is subject to requirements covering age verification, responsible gambling, integrity and advertising.
As a result, IGCO warned that other online platforms offering sports or entertainment event contracts to BC residents are considered illegal. They should therefore be avoided.
The regulator’s clarification is particularly significant as prediction markets continue to expand internationally. Some platforms are positioning event contracts as financial products rather than gambling services.
Regulators Increase Scrutiny
British Columbia is not the only Canadian jurisdiction responding to the recent guidance. The Alberta Gaming, Liquor and Cannabis regulator also backed the CSA and CIRO position. It said it was assessing the implications for its own oversight of online gambling.
For prediction market operators, the developments highlight the importance of understanding provincial gambling rules and licensing requirements when offering sports or entertainment-based contracts to Canadian users. In British Columbia, the regulatory position is clear. Such products are treated as gambling and must comply with applicable gambling legislation.
