Rick Wurster

having that on our platform, those types of prediction markets.

At the moment, it's not high on our clients' list of things they want us to innovate for them, and so we've been focused our innovations in other areas that are of more interest to clients.

But I distinguish that between that and sports gambling.

And if you look at 95% of the volume of what people call prediction markets is actually just sports gambling.

And that's not something that we're keenly interested in getting into for a very simple reason, which is our mission as a firm

is to make clients better off in their financial life.

And less than 5% of people who go on to one of these gambling apps take out more money than they put in in the first place.

Wow.

That's the complete antithesis of what we do at Schwab.

Our clients' wealth is at an all-time high.

The level of advice we're giving them is at an all-time high, and the amount we're doing to try to help them is at an all-time high.

So

We'll leave the sports gambling, which constitutes 95% of the prediction market's volume, we'll leave that to the gambling houses, to the Vanduuls, the DraftKings, and the Robinhoods.

I think if you want to take a position on what the employment report's going to be at the end of the month or how inflation's going to print, those things could have an impact on your portfolio.

If you have a big bond position, you may have interest in what's going to happen in the inflation report.

And it's a simple way of taking a position based on a yes or no position.

And so that could be of interest to clients.

But the reason I think we haven't seen much volume in those and the reason why 95% of the volume is in sports gambling is because if you want to take a position on the employment report or the inflation report, there are countless ways to do that and financial market participants are already doing that, whether it's in the bond market, in the futures market, through options.

There's plenty of ways to do that today and I think that's part of the reason why

the true idea of prediction markets really haven't taken off and why the firms that offer this have pivoted to sports gambling, because there's a lot more interest in that than there is in taking a position on the employment or inflation report.