Charles Schwab Corp. is likely to launch prediction markets linked to financial events as competitors including Robinhood Markets Inc. expand their presence in the space.
Schwab is “taking a hard look” at prediction markets, Chief Executive Officer Rick Wurster said on a conference call Thursday, but would stay away from allowing customers to place wagers on sports or pop culture given the firm’s focus on building clients’ long-term wealth.
Rick Wurster Photographer: Desiree Rios/Bloomberg
“Prediction markets that are not aligned to that are not something we want to pursue,” Wurster said on the call with analysts to discuss first-quarter results.
Prediction markets are not on the top of clients’ lists of demands, he said, but Westlake, Texas-based Schwab is “ready to move when and if needed, and when we do, we’ll stay away from gambling.”
