Schwab, Citadel Eye Prediction Markets, Excluding Sports

Schwab CEO Rick Wurster told investors on a Thursday earnings call that the company would likely offer prediction markets at some point.

Prediction Market News

Charles Schwab and Citadel Securities are both exploring entry into prediction markets, according to separate statements made by executives at each firm on Thursday. Neither company has announced a formal plan, and both have ruled out any involvement in sports-related contracts.

Schwab CEO Rick Wurster told investors on a Thursday earnings call that the company would likely offer prediction markets at some point. He said the category would be "quite straightforward" for Schwab to add to its platform. A recent survey of Schwab clients, however, showed limited enthusiasm for the product, Wurster noted.

Wurster was direct about what Schwab would not pursue. Contracts tied to sports, politics, and pop culture fall outside the company's focus on building long-term client wealth. "If you look at the stats on the success of gamblers, they're not strong, and people generally lose money," he said.

Citadel Securities president Jim Esposito

at a Semafor conference in Washington, D.C., on the same day. He said the firm is "absolutely keeping an eye on developments" in prediction markets. Esposito noted that liquidity in the space is still too thin for Citadel to move forward right now, but he expects the market to grow and scale over time.