Meta Developing Prediction-Market App Modelled on Kalshi and Polymarket

^{Pictured: Mark Zuckerberg}

Meta CEO Mark Zuckerberg has ordered the company to develop a standalone prediction-market app modelled on services such as Kalshi and Polymarket. The New York Times reported this, citing two company employees.

The project has been given the working name Arena. The idea is for it to be a separate app, rather than a section within Facebook or Instagram, which are owned by Meta. Users will be able to make predictions on various events, including sports matches, political developments, news stories and entertainment industry events.

Initially, users will not be betting with real money. According to the report, the app is likely to use a points-based system: users will choose a possible outcome of an event and receive points if their prediction proves correct.

However, Meta has not ruled out switching the project to a real-money model in the future.

The idea behind Arena is linked to growing interest in prediction markets. On such platforms, users can not only discuss world events, sport or politics, but also make predictions about their outcomes. For Meta, it is a way to test a new form of audience engagement, especially as its largest social networks have already reached enormous scale.

The project has already drawn criticism from some US politicians. Senator Richard Blumenthal, in particular, said the company risked entering an area associated with addiction and regulatory uncertainty.