Meta Explores Prediction Market App Similar to Polymarket

Meta CEO Mark Zuckerberg has tasked a small team at the company with making an app that works like the prediction markets Polymarket and Kalshi, according to The New York Times. The app, internally called "Arena" won't let users wager real money, but instead will "probably rely" on allowing users to bet with points, the NYT says - though Meta apparently hasn't ruled out eventually allowing people to bet with real money. Should Meta's app launch publicly, it would be just the latest example of Meta taking a popular idea from another company and building its own version, like it did when it cloned Snapchat's Stories format and TikTok's vertical video feature.

The New York Times report did not provide details on the expected launch date or features of the app beyond the use of points for betting. Meta's interest in prediction markets comes as the company continues to explore ways to engage users and increase interactions on its platforms. Why this matters: Meta's foray into prediction markets could have significant implications for the broader social media and tech industries.

If successful, the app could provide a new way for users to engage with each other and with current events, potentially increasing user retention and attracting new users to Meta's platforms. For developers and businesses, the app could offer new opportunities for creating and distributing prediction market-based content. However, questions remain about how Meta plans to ensure the integrity and fairness of its prediction markets, particularly if it eventually allows real-money wagering.

Additionally, regulators may scrutinize the app's use of points or real money for betting, raising concerns about potential addiction and social impacts.