Key Takeaways:
Meta CEO Mark Zuckerberg directed a small team to create a prediction markets smartphone app similar to Polymarket and Kalshi, the New York Times reported Tuesday, citing two employees.
The app, internally referred to as "Arena," would operate independently from Meta's social networking apps including Facebook, Instagram, WhatsApp and Messenger, the Times reported.
The app will likely rely on a video game-like points system instead of users wagering money, though Meta has not ruled out allowing real-money betting eventually, the report said. Prediction markets surged in popularity during the 2024 US presidential election and have evolved into an asset class that lets investors wager on events from monetary policy to sports tournaments. Trading platforms including Robinhood and Interactive Brokers have rolled out event contracts.
Meta's entry would bring the world's largest social media company by user base into direct competition with Polymarket and Kalshi, potentially expanding the prediction markets audience beyond crypto-native users. The move also risks drawing increased regulatory scrutiny to a sector that operates under a patchwork of state and federal rules in the US.
The development marks Zuckerberg's latest push into financial services, following Meta's previous attempts with cryptocurrency projects including the Diem stablecoin and Novi wallet, both of which were shuttered after regulatory pushback. A Meta spokesperson did not immediately respond to a request for comment.
This article is for informational purposes only and does not constitute investment advice.
