British Columbia declares prediction markets illegal gambling
British Columbia’s gambling regulator has warned that prediction markets offering contracts on sports and entertainment events are operating illegally in the province.
The Independent Gambling Control Office (IGCO) issued the warning on Friday following new guidance from Canadian securities regulators on how prediction market contracts should be treated.
Under B.C. law, products based on the outcome of sporting or entertainment events are considered gambling and must comply with Canada’s Criminal Code and provincial gambling legislation.
The IGCO said any online gambling or prediction market offering such products to people in B.C. without authorisation is operating illegally.
“All other online gambling websites that allow BC players to access their sites, including those that offer event contracts based on sports or entertainment outcomes, operate illegally in our province,” the regulator said.
The warning potentially affects major prediction market platforms offering event contracts to Canadians, including Kalshi and Polymarket.
It follows guidance issued by the Canadian Securities Administrators (CSA) and Canadian Investment Regulatory Organization (CIRO) on Thursday.
The CSA said sports and entertainment event contracts should not be regulated under securities and derivatives legislation, effectively leaving those products to be dealt with under Canada’s gambling laws. The regulatory status of other types of prediction contracts remains under assessment.
British Columbia takes a monopoly approach to regulated online gambling. The British Columbia Lottery Corporation (BCLC) is the only entity authorised to conduct and manage commercial gambling on behalf of the provincial government.
Despite the strict stance on prediction markets and advice to only wager with the state-sanction website, many offshore online casinos and betting sites accept players from British Columbia.
