Prediction markets, a rapidly growing sector within financial technology enabling users to speculate on real-world events, will soon be accessible to Canadian retail investors through Wealthsimple this summer. The Toronto-based online financial services firm is currently beta testing a new app, Wealthsimple Predict, which will grant clients access to event contracts via the U.S. prediction market Kalshi.

This development follows the restricted approval from Canadian regulators for prediction-market trading related to economic indicators, financial markets, and climate trends, excluding sports, elections, or pop culture. Brett Huneycutt, co-founder and chief product officer of Wealthsimple, highlighted the significant growth of prediction markets globally, emphasizing the platform’s resemblance to financial exchanges, where users can engage in simple yes-or-no or higher-or-lower wagers on real-world event outcomes.

Previously, Canadians faced limited access to prediction markets due to regulatory constraints on broad retail trading. This led many Canadians attempting to utilize such platforms to disguise their geographic location using VPN services.

Wealthsimple aims to educate users about the key risks associated with these trades, including the potential of losing the entire value of a position. Notably, Kalshi and Polymarket, the primary players in the sector, have seen remarkable growth over the past couple of years. Recent data indicates that the top five prediction markets witnessed approximately $100 million in bets in 2024. As of April 2026, Kalshi and Polymarket collectively boasted a monthly global trading volume of around $24 billion.

Kalshi’s popularity surged primarily due to sports-related bets, constituting an estimated 90% of its trade fees. The platform’s integration into news coverage with media giants like CNN further bolstered its business. Meanwhile, Polymarket gained prominence through partnerships involving high-profile events like the Golden Globes, endorsements by comedian Trevor Noah, and coverage on 60 Minutes by CBS News.

Aside from sports, popular markets on Kalshi and Polymarket encompass diverse areas such as pop culture, politics, international conflicts, cryptocurrency, scientific advancements, economic indicators, financial markets, and climate-related events. However, Wealthsimple’s users will have access only to prediction markets approved by the Canadian Investment Regulatory Organization, focusing on economic indicators, financial markets, and climate.

Upon the launch of its prediction markets app, Wealthsimple intends to provide access to nearly 4,000 event contracts available on Kalshi’s platform. Andrew Kim, a psychology professor and gambling expert at Toronto Metropolitan University, expressed relief that sports events and pop culture are excluded from prediction markets in Canada, believing that these limitations would deter many gamblers from participating.

While some experts acknowledge the legitimate applications of prediction markets in gauging the wisdom of the crowd with sufficient investor participation, concerns persist regarding their susceptibility to insider trading. Several instances of suspicious trades on prediction markets have been reported, including a controversial bet on the capture of former Venezuelan leader Nicolás Maduro, allegedly involving classified information from a U.S. military mission.