Mark Zuckerberg's Meta joins the prediction markets competition

Mark Zuckerberg, CEO of Meta Platforms, which owns Instagram, Facebook, WhatsApp, and more, has directed his team to enter the prediction market and create a dedicated app, as reported by the New York Times on Tuesday, June 23.

CNBC has independently confirmed these plans, citing a source who shared details under anonymity, highlighting a key difference in how Meta Platforms is launching its new venture. The upcoming project won't require users to stake real money on future events. Instead, it will introduce an in-game currency or point system, much like those found in video games, according to CNBC. Two sources informed the New York Times that the app is named Arena. It will operate separately from Meta’s Instagram and Facebook platforms but will benefit from their massive user bases. Meta boasts a staggering daily user base of 3.56 billion across its social media apps, and Mark Zuckerberg, known for his adventurous spirit, is keenly exploring ways to develop new apps that anticipate and tap into social trends. According to the sources, the app will be available on smartphones and will resemble platforms like Polymarket and Kalshi, aiming to engage users through gamification rather than profiting directly from wagers.

One reason Meta is expanding beyond its stronghold in social media is reportedly due to an internal recognition that Facebook and Instagram are leaning more towards video content. This shift imposes limitations on testing new products within that environment, leading the company to explore entirely new alternatives. By embracing gamification and developing a mock currency or video game point system, as rumored, Meta is staying ahead of the curve. With mainstream prediction market platforms under increased regulatory scrutiny, Meta is potentially leveraging its user base in innovative ways to boost engagement, ad revenue, and further integrate within its vast ecosystem.