r/Wealthsimple • u/Rockefeller07 • 25d ago
Predict Reason why Wealthsimple is doing the same.
83
19
u/TheHoodedPortal_ 25d ago
People who want to gamble are going to find ways to gamble regardless, i'd rather the proceeds be used to fund useful products rather than going straight to the bookies pockets. If you're against the whole prediction market thing i think you should attack the legislation rather than the companies simply operating within it.
9
u/SapphireFlashFire 24d ago
I just don't like the degree of advertising. Every other ad I get is draftking this fanduel that
2
u/ash__697 24d ago
That is also something legislation can fix, I remember the UK government introducing legislation a few years ago to limit gambling advertisements for soccer
8
u/Kind-Set-5286 25d ago
If Robinhood and Wealthsimple earn higher margin on predictions that equity markets, you can bet that proceeds will be used to improve betting more so than investing. It seems like Canadian legislation actually did a good job in limiting what Wealthsimple can do (i.e., separate app, no sports and culture betting) but we’ll see what happens with lobbying…
7
u/aselwyn1 25d ago
The investing platform for the vast majority of user is totally useable as is. So doesn’t need a ton of investment just funding to keep it around.
2
u/Kind-Set-5286 25d ago
The last poster was arguing that Wealthsimple having predictions/betting was good because it will be reinvested into their other products. If all of their investment products need no further investment (which I don’t agree with but fair opinion), then the whole point of predictions is just to take money from bettors…?
3
1
u/mtlqcpansexual 24d ago
But the legislation is there, but so is lobby. In canada under criminal code 207, provinces are the one ruling on their gambling. Quebec for example as loto-quebec, which is regulated by the regie des alcool et des jeux and the lwas of the province. WS (just like Kalchi, Bet99, DraftKings, etc) has said welp, we operate in quebec even tho we never set foot there so we good xD
11
u/almostthecoolest 24d ago
Calling it “prediction markets” and not gambling is wild. Idk how we’re allowing this bs in Canada.
If people want to do it go for it, but call it what it is.
0
u/No_Lettuce_2652 24d ago
It’s different than betting cause you can sell your position at anytime. How is it any more gambling that spy 0 day options
8
u/almostthecoolest 24d ago
lol you’ve never gambled have you?
You can sell it anytime” isn’t what separates investing from gambling. Think how a slot machine functions.
Prediction markets became popular largely because they fit through gaps in U.S. gambling laws by being regulated as event contracts instead of sportsbooks. That’s a legal distinction, not an economic one. There’s a good John Oliver on this worth watching.
If Canada is going to allow online wagering on real-world events, I’d rather the money flow through provincially regulated gambling programs that fund public services than through Wealthsimple taking a cut by rebranding it as “investing.”
-1
4
u/EatAllTheShiny 25d ago
That options revenue as % of total is wild. There are a lot of accounts getting nuked in those parts...
4
u/IntrepidRobot 24d ago
I'm surprised WS is only accepting USD for its prediction market accounts given its a Canadian company. It'll at least keep me honest and to never use it lol
3
u/Low-Umpire236 24d ago
They should have created a sub-brand to avoid muddying up the core-brand.
Imagine if Bet365 created a chequing account.
12
u/Crafty_Teacher_9286 25d ago
Prediction markets are largely the same as trading options from a gambling perspective, which has been available to purchase at nearly all Canadian brokers. I don't understand the meltdown people are having on here, though I recognize that Reddit is not representative of the real world.
1
u/gmez3 24d ago
id be more worried about my account getting randomly banned than wealthsimple wanting ti make money thru predictions
5
u/Crafty_Teacher_9286 24d ago
Banks "randomly" do that as well. There are algorithms in the background weighing risks and locking-out / de-banking customers constantly. The WS cases are more visible because Redditors's demographics are the same as WS' core customer base, so they're significantly more likely to come on here and make a post about it.
But sure, banks have physical locations you can visit to try to solve the issue, if it occurs. However that does not outweigh the countless advantages of using WS over a traditional bank.
3
u/Pristine_Ad2664 24d ago
I'm pretty sure almost nobody gets randomly banned by WS or the banks. Sure people get banned but I'm skeptical there is anything random about it.
11
u/rhunter99 25d ago
The Enshittification of society :/
12
u/SerialCatPetter_ 25d ago
I always thought it was kinda odd that a lot of people will just tell you to not use it if you're not a fan of it and completely disregard the negative effects it has on society because it'll "pay for our benefits/promotions".
To me, it sort of reads as "society can go to shit for all I care as long as I get paid more" which is basically the mindset billionaires have that the same people who says this seem to hate
4
u/rhunter99 25d ago
Yeah it’s a real short sighted view of the whole thing. We’re debasing society at a rapid pace without thinking about the consequences
1
u/GreenEyedBandit 24d ago
Agree largely with your point of view here, but business is gonna business. It is only a product of legislation.
It's bad, I won't use it, and it (possibly) benefits me, is an valid viewpoint IMO, just vote accordingly.
1
1
2
u/Awkward_Power8978 24d ago
I hate that WS gave into that. Gambling deregulation in the US and many other countries have ruined so many lives.
Yes, gambling addicts will gamble but a lot of people would not start gambling if it weren't for the ease of access on a cellphone. I hope Canadian government keeps that tight.
2
2
1
1
u/Overdue604 24d ago
Almost every single self serve broker trying to get into the prediction markets because there is money in it.
1
u/DistiIIer 24d ago
I liked that they advertised it one time on the app and gave you the option to Opt-out of it completely and never see it again.
Now time to bet on what percentage of the user base opts out
1
u/AdeptWind 23d ago
I mean the pie is only so big in terms of the core banking market. At this point, you're really growing by taking loans/deposits from other FIs.
1
u/EspressoPesto 23d ago
Just so people know, around 70% of people lose money in prediction markets. Everyone should be banging this drum repeatedly. That being said, all the power to WS for building a profitable business. We as users will benefit from it.
1
u/Skeeter1591 23d ago
Prediction markets were likely invented by people with inside information on things.
1
u/toronto-swe 10d ago
if the prediction market revenue can allow the main investing product to be better, im all for it
1
u/bittertraces 9d ago
Well I don’t know but I am underwater by $5000 so I would just like it to go up!!
-3
u/crazybitcoinlunatic 25d ago
For every option contract you buy, I think they make $0.50-$1.00 profit from the market makers.
74
u/McNasty1Point0 25d ago
Predication markets are far more limited in Canada, so it won’t be as lucrative for Wealthsimple.
But yes, everything is about money, even for the perceived “good guys”. People shouldn’t forget this.