Schwab CEO: We'll leave prediction markets to firms like Robinhood

Rick Wurster, CEO of U.S. brokerage Charles Schwab, said that while prediction markets can be helpful to investors, their sports betting component conflicts with the company's core mission. In an interview with The Block, he explained that prediction markets have three functions, only two of which are meaningful for investors. First, they offer insights into the probability of various events, which is beneficial information. Second, these markets are directly linked to economic indicators like inflation and employment data, which can be useful for investors looking to hedge or adjust their portfolios before macroeconomic events. The third function, sports betting, is what the company struggles with, Wurster noted, as it runs contrary to Schwab's mission. He stated, "We will leave this business to companies that position themselves in gambling, such as FanDuel and Robinhood."