Mark Zuckerberg directs Meta to create prediction markets app 'Arena'

Meta, the parent company of Facebook, is reportedly developing a prediction market application named 'Arena,' signaling a move into a space currently dominated by platforms like Polymarket and Kalshi. According to a New York Times report citing company employees, CEO Mark Zuckerberg has prioritized this initiative, tasking a team to create an app that could challenge existing players. While the app might initially use a points system akin to video games, the possibility of incorporating real-money wagering has not been ruled out. Arena is expected to operate independently of Meta's core social media applications, with plans to leverage its vast user base for growth. This venture aligns with Zuckerberg's broader strategy to explore emerging online trends and new types of applications, including potential forays into crypto payments and stablecoin integration. The development occurs amid increasing regulatory scrutiny of prediction market platforms, with some facing accusations of operating illegal gambling sites and probes into alleged misleading advertising.