Schwab is launching S&P 500 binary options, opening prediction markets to its huge retail base

Over the past two years, trade activity has increased 393 times in prediction markets.

But a new trend is emerging: big businesses are beginning to manage these markets on their own.

Charles Schwab and BetConstruct AI declared that they would launch “yes-or-no” event trading on their respective platforms that same day.

This indicates that event-based trading is no longer limited to specialist startups but is instead becoming a feature that big businesses can simply use.

Large brokerages and international sports organizations are bringing this technology in-house to keep users on their platforms rather than losing business to firms like Polymarket or Kalshi.

BetConstruct will offer sports-related contracts pertaining to FIFA games, while Charles Schwab intends to offer event contracts based on financial results.

Charles Schwab is getting ready to cooperate with Cboe Global Markets in the prediction markets sector, according to The Wall Street Journal.

Schwab will concentrate on binary options connected to the S&P 500 rather than contracts based on political or sporting events.

Depending on whether the index closes above or below a predetermined target level, these contracts will pay traders.

Schwab is also considering a feature called “Plus Zone,” which would reward predictions that are close to being correct.

This system would allow three possible outcomes: no payment, a partial payment, or the full $100 payout.

The move comes after Cboe introduced a prediction market structure in March using a Mini S&P 500 contract.

Over time, Schwab plans to expand into other financial indicators, while avoiding contracts related to sports, politics, or entertainment events.

With 39.5 million brokerage accounts and $13.14 trillion in client assets managed by Charles Schwab as of May 2026, this development exposes prediction markets to a sizable user base.

Additionally, it shows a change in CEO Rick Wurster’s stance. He previously warned against conflating gambling with investment and voiced concerns about prediction markets.

He does, however, see financial event contracts in a different light than wagers on the results of sports or entertainment.

By joining the market, Schwab joins platforms like Kalshi, Polymarket, Coinbase, and Cboe, as well as other financial companies like Robinhood and Interactive Brokers, all of which are contributing to the expansion of prediction-based trading.

BetConstruct takes the sports route through FIFA

In the meantime, gambling technology provider BetConstruct AI is giving its operator partners access to prediction markets through a collaboration with FIFA’s official prediction market partner, ADI Predictstreet.

The agreement allows operators to provide event contracts in addition to live match broadcasting.

“Partnering with ADI Predictstreet, FIFA’s Official Prediction Market Partner, marks another important step in expanding the capabilities of the BetConstruct AI ecosystem,” said Vigen Badalyan, co-founder of BetConstruct AI.

“Together, we are enabling operators across Europe and selected international markets to benefit from official match streaming rights and next-generation prediction market experiences.”

Sports are the most profitable event category. Four of the 10 most profitable Polymarket wallets made $22 million from trading mostly in sports markets between January and March of 2026.

Rules tighten as legacy players gain ground

Europe still lacks a unified approach to prediction markets.

Some countries, including France, the Netherlands, Belgium, and Portugal, have restricted platforms like Polymarket, while Gibraltar has issued the region’s first prediction market license and Malta is developing its own rules.

Other markets, including Germany, Spain, the UK, Ireland, Denmark, and the Nordics, remain in regulatory uncertainty.

Through a collaboration with Predictstreet, BetConstruct is introducing sports prediction contracts ahead of the World Cup.

Since they may provide comparable products under their current sports betting licenses, established iGaming companies may benefit from regulators’ increased monitoring of independent prediction market operators and the implementation of new EU regulations on July 1.

Instead of the entrepreneurs who created the category, the companies that currently control distribution, licensing, and regulatory access now appear to be in charge of the future of event contracts.

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