Meta to Develop Polymarket-like Betting App: Arena
Meta is reportedly developing a smartphone app similar to Polymarket, allowing users to place bets. Mark Zuckerberg has assigned a team for this project, named Arena.
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Meta is reportedly working on a Polymarket-like smartphone app where users can place bets. Mark Zuckerberg has assigned a team specifically for the development of the app, internally referred to as Arena, according to a report by the New York Times.
Recently, so-called prediction markets like Polymarket and Kalshi, where users can bet on the occurrence of certain events, have come under pressure due to alleged insider trading. For instance, a Google employee reportedly made a profit of around $1.2 million using insider information from their employer.
Meta: Entering the Prediction Market Business?
Additionally, Polymarket is said to have paid influencers to spread fake videos of supposed winnings on the platform, according to the Wall Street Journal. However, the impending entry of Facebook's parent company Meta into the prediction market business could pose a much greater threat to Polymarket and competitors like Kalshi.
According to the New York Times report, Meta is indeed working on a smartphone app where users can place bets similar to Polymarket or Kalshi. Mark Zuckerberg has reportedly set up a development team for this purpose.
Arena: Betting with Real Money in the Future
As a company insider confirmed to CNBC, Meta's prediction app, internally called Arena, will initially not allow real money betting. Instead, the app will use a points system similar to that used in video games. However, Meta has not ruled out the possibility of allowing real money betting in the future.
Reports suggest that Arena will not be integrated into Meta's social media platforms but will operate as a standalone application. Nevertheless, Meta is likely to leverage the user base of its upcoming betting app through the potential of Facebook or Instagram, with over 3.5 billion people using one or more Meta apps daily.
Arena and Photos: Meta is Seeking Trends
Arena is expected to be the first result of a broader initiative by Meta to develop new apps that align with potential future online trends. The company aims to generate new growth through this. Another app, Meta Photos, is said to be an application that will use AI to create new types of media content, as reported by Investing.com.
In addition to Polymarket and Kalshi, Robinhood and DraftKings may also be affected by Meta's potential prediction market incursion. Shares of both companies fell after the NYT report was published. Both Robinhood and DraftKings had recently significantly expanded their prediction betting business.
