Key facts
- Meta CEO Mark Zuckerberg has directed his team to explore partnerships with prediction markets Polymarket and Kalshi.
- Meta is developing its own prediction market app, internally codenamed Arena.
Meta CEO Mark Zuckerberg is reportedly urging his team to explore partnerships with prediction markets Polymarket and Kalshi as the company develops its own app, Arena. Unlike existing platforms that use real money, Arena will reportedly use video-game-like points.
Meta's entry into the prediction market space, even with a points-based system, could significantly alter the landscape for event-based forecasting platforms and potentially influence how users engage with information and make predictions.
Meta CEO Mark Zuckerberg has reportedly instructed his executives to investigate potential collaborations with prediction markets Polymarket and Kalshi as the company works on its own similar application, according to a New York Times report citing three sources. The new app, internally codenamed Arena, is intended to differ from existing platforms by utilizing video-game-like points rather than real-money wagers.
Prediction markets have seen a surge in popularity, particularly around the 2024 U.S. presidential election, evolving into a means for investors to wager on a wide array of events. However, these markets have also attracted increased scrutiny due to instances where traders have allegedly profited significantly from well-timed trades preceding major policy announcements.
Zuckerberg's target audience for Arena is individuals aged 18 to 34, with Meta aiming to achieve at least 100 million monthly active "predictors" for the app. The Arena app is currently undergoing internal testing and its release is not guaranteed. Meta's long-term plan includes integrating aspects of Arena into its existing platforms, Facebook and Messenger.