33 Prediction Markets: Investing or Gambling? What Canada’s New Rules Mean for You

Prediction markets have officially arrived in Canada — but are they innovative forecasting tools or just gambling dressed up in financial language? In this episode of Not Just Money, Doretta and Li break down what prediction markets really are, how they work, why regulators are suddenly paying attention, and what Canadians need to know before putting a single dollar into forecast contracts. They explore: What prediction markets are and how “yes/no” contracts actually work Why Wealthsimple Predict and other platforms are entering the Canadian market The strict rules set by CIRO — and why Canada is not allowing political, sports, or celebrity prediction contracts How prediction markets exploded in the U.S. (and why sports betting now dominates the space) The risks of market manipulation and why institutional investors can skew probabilities The growing link between mobile betting, debt, and gambling addiction — especially among young men Why regulators see prediction markets as sitting between derivatives, speculation, and gambling Whether these tools genuinely improve forecasting… or simply monetize human behaviour Li also shares her candid view on why prediction markets may become yet another “get rich quick” trap targeting financially stressed young adults — and why friction matters when it comes to protecting people from harmful financial habits. If you’ve seen the headlines about prediction markets coming to Canada and wondered whether they’re an opportunity or a danger, this episode gives you the clarity you need.