Mark Zuckerberg wants Meta to launch its own prediction market

Mark Zuckerberg is betting that prediction markets are the future.

The New York Times reported that Zuck wants Meta to have its own smartphone app similar to Polymarket and has given the green light to its development, internally calling it “Arena.” The app will be independent of Meta’s other social media offerings, though sources told the newspaper those social sites could direct users to interact with the app.

Sources said the current concept for Arena could be described as “experimental but high priority” and, oddly enough, would not involve money. Instead, it will essentially be a video game where users earn points for betting correctly on certain topics. The sources added that the funds could be added later.

Over the past year, prediction markets have fueled big profits and controversy. As of April, trading volume on platforms like Polymarket and Kalshi reached tens of billions of dollars. Other social media sites — such as X (which partnered with Polymarket last summer) — have sought to capitalize on the industry.

Legal cases also rose. Among the high-profile cases is a former high-ranking Special Forces soldier who was accused of using inside information to benefit the capture of Venezuelan President Nicolas Maduro. Jorge Santos is also currently under investigation for alleged Calci dealings.

States have also begun suing prediction markets for what they claim are violations of gambling laws. To make matters more complicated, the current administration, which is decidedly pro-prediction market, has sued the states because they have filed lawsuits against prediction markets.