Wealthsimple Brings Prediction Markets to Canada in New Kalshi Deal

On Thursday, June 18, Wealthsimple and Kalshi announced their partnership to provide prediction markets to Canada this summer.

The new specialized software, Wealthsimple Predict, will enable retail investors to trade almost 4,000 event-based contracts on Kalshi.

Above all, those contracts based on events will be categorized. The Canadian Canadian Canadian Canadian Canadian Canadian Canadian Canadian Canadian Canadian Canadian Canadian market. Thus, "no" to contracts for political and sporting events. However, "yes" to economic indices, financial markets, and the climate.

"Prediction markets are the fastest-growing segment of global financial markets, letting traders turn an opinion into a position on the factors that shape our world – where inflation is headed, what happens to rates, or how the year unfolds,” said Brett Huneycutt, co-founder and Chief Product Officer, Wealthsimple.

“Until now, Canadians have had limited access. Wealthsimple Predict gives Canadians a clean, well-designed way to access these markets, with education and guardrails built in from day one.”

CIRO Approval Secured

In March, Wealthsimple was granted permission by the Canadian Investment Regulatory Organization (CIRO) to provide event and forecast contract trading, which is governed as a derivative. Only pre-approved categories having a settlement duration of 30 days or more are eligible for this approval.

The Canadian Securities Administrators (CSA) and CIRO jointly issued a warning after the first March release, stating that any "failure to comply with applicable requirements..." may lead to enforcement measures.

Enforcement Enforcement

Canada's securities securities securities securities regulations regulations.

CIRO is the national self-regulatory organization that supervises investment dealers, mutual fund dealers and trading activities on Canadian debt and stock marketplaces.

The only other CIRO Investment Dealer Member permitted to permit trading in event contracts is Interactive Brokers Canada Inc.

With government approval from the Commodity Futures Trading Commission (CFTC), Kalshi functions as an authorized event contracts exchange in the United States.

Following a settlement with the Ontario Securities Commission in 2025, Polymarket, Kalshi's rival, was outlawed in Ontario. That 27. 27.

U.S. Court Case

Whether federal derivative rules supersede state gaming laws so that CFTC-registered prediction market platforms are exempt from state gaming regulations is a major legal dispute in a number of US states.

According to Evan Thomas, a lawyer who counsels fintech clients, there is no federal authority in Canada claiming exclusive control for event contracts. There is no federal preemption argument because both gambling and securities regulation are handled at the provincial level. According to Thomas, "the question is whether the gaming regulators and policymakers in Ontario and Alberta are open to sports prediction markets."

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He said that there would be significant challenges to overcome, including as making sure all parties involved are satisfied that prediction markets are permissible under the Criminal Code and the existing iGaming structures. At the federal or provincial levels, legislative or regulatory changes may even be required.

Because exchange-traded contracts pose distinct risks than regular sportsbooks, provincial gaming regulators may need to develop institutional competence to monitor them.

“In theory, if the regulators and policymakers in Ontario or Alberta were open to it, a prediction market platform could become a registered iGaming operator,” Thomas said.

“And it’s possible. The demand in Canada for sports event contracts is clearly there,” he added, noting that prediction markets can offer better pricing and fairer structures than traditional sportsbooks. “Not allowing a regulated alternative simply pushes Canadians towards unregulated markets, which hurts consumers rather than protecting them.”

Wrinkle in Strategy

He continued, "It's easy to see how prediction markets in Canada offering sports could develop over time because regulators and policymakers are watching."

“There’s also a strategic wrinkle for the major U.S. platforms,” said Thomas. “They are spending enormous legal resources arguing that their products are federally regulated financial derivatives, not gaming. Seeking a provincial gaming registration in Canada might concede the point they’re fighting in U.S. courts.

“Even if a Canadian framework was open to them, they may not want to walk through that door while the U.S. preemption argument is unresolved.”