Why are prediction markets coming to Canada?

Investment company Wealthsimple is partnering with Kalshi to launch Wealthsimple Predict. It’s an app that’ll allow Canadians to place bets on things like Bank of Canada interest rates, job numbers and long term weather patterns.This comes at a time where there’s growing scrutiny on prediction markets in the U.S. for misleading advertising and susceptibility to insider trading. So why are young investors, especially Gen Z, fuelling the demand for prediction markets and other high risk and speculative ways to make money? And what are the risks of companies like Wealthsimple leaning into the gamification of the economy?Charles Martineau, Associate Director of Research at the Rotman Financial Innovation Hub at the University of Toronto, joins us to talk about the phenomenon and what the data tells us about who actually wins on prediction markets.For transcripts of Front Burner, please visit: https://www.cbc.ca/radio/frontburner/transcripts