en.Wedoany.com Reported - Meta CEO Mark Zuckerberg has formed a small internal team to develop a prediction market smartphone app similar to Polymarket and Kalshi. The app, internally codenamed "Arena," will operate independently of social platforms such as Facebook, Instagram, WhatsApp, and Messenger.

The New York Times reported Tuesday, citing two employees familiar with the matter, that the app may use a points system similar to video games rather than allowing users to wager real money. However, Meta has not entirely ruled out the possibility of enabling real-money bets in the future. Meta did not immediately respond to a Reuters request for comment, and Reuters could not independently verify the report.

Prediction markets saw a significant surge in attention during the 2024 U.S. presidential election and have since evolved into an asset class, allowing investors to bet on a variety of events, including monetary policy and sports outcomes. Trading platforms such as Robinhood and Interactive Brokers have already launched related event contract products.

Internally referred to as "Arena" at Meta, the app will operate independently of social applications like Facebook, Instagram, WhatsApp, and Messenger. Arena is one of several apps Meta is testing; another standalone app, Meta Photos, aims to generate new forms of media.

According to the report, Meta plans to leverage its vast social network user base to drive the app's growth. In April, the company reported an average of 3.56 billion daily active users, a metric that counts the number of unique users who open any Meta app in a single day.

Bernstein said in April that the annual trading volume of prediction markets could swell to $1 trillion by the end of this decade. However, prediction markets have also drawn increased scrutiny due to precise trades made before major policy surprises by U.S. President Donald Trump, which could yield millions of dollars in profits for unidentified traders.

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