CIRO Updates Terms to Bar Sports and Entertainment Event Contracts as Polymarket Records $500,000 Toronto Election Volume
CIRO updated its terms to explicitly prohibit sports, entertainment, and political event contracts for investment dealers, following August 2026 joint guidance with the CSA. Wealthsimple Predict launched in July alongside Interactive Brokers Canada, yet Polymarket recorded over $500,000 on the Oct. 26 Toronto mayoral race. A former Vanguard Canada CEO is leading a new regulated platform application called VerdX.
SCCG Take — Regulators are sharpening permitted categories while offshore volume on political events persists, signaling enforcement gaps that new domestic applicants must navigate within strict 30-day maturity and product limits.
Canada’s investment watchdog is tightening rules governing prediction markets. The Canadian Investment Regulatory Organization (CIRO) updated its terms and conditions to more expressly prohibit event contracts based on sports or entertainment events or outcomes.
“Further to the August 27, 2026 joint CSA and CIRO guidance, CIRO does not consider it appropriate to facilitate or approve an application by its Investment Dealer Members to trade event contracts based on sports and entertainment events or outcomes,” said CIRO in a statement on Oct. 16. “In this respect, CIRO has specifically enumerated such contracts as prohibited in the updated terms and conditions.”
Under existing CIRO rules, authorized investment dealers can offer only certain event contracts tied to economic forecasts, environmental indicators, and financial markets, with a minimum 30-day maturity period. Contracts involving elections and other political outcomes are prohibited. CIRO is also banning investment dealer members from presenting or promoting non-permitted contracts to clients.
Last March, CIRO along with the Canadian Securities Administrators (CSA) authorized Wealthsimple to set up a prediction market. Wealthsimple Predict went live last July. Interactive Brokers Canada Inc. is the only other authorized CIRO investment dealer member for such trading.
Polymarket Activity on Toronto Election
Despite those restrictions, Polymarket has attracted more than $500,000 in trading volume on Toronto’s Oct. 26 mayoral election. Brad Bradford stands at 50% ($201,762 volume) while incumbent Olivia Chow is at 49% ($258,735 volume). The activity could involve foreign traders, Canadians circumventing geographic restrictions, or both.
New Competitor on the Horizon
A team of financial leaders headed by former Vanguard Canada CEO Atul Tiwari has filed an application seeking registration as an investment dealer and CIRO member to launch a regulated platform offering event contracts called VerdX. The development, according to Casino.org News, arrives as regulators continue to draw firm boundaries on what domestic dealers may offer.
The updated prohibitions leave little room for expansion beyond narrowly defined economic, environmental, and financial contracts. Domestic platforms must operate inside those lines while offshore venues draw measurable election interest.
Reporting: Casino.org News
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
Gaming, betting and prediction markets — the desk’s read, every weekday.
Subscribe →