Meta's Zuckerberg wants to build prediction market app like Polymarket and Kalshi: NYT

Meta CEO Mark Zuckerberg wants to enter the prediction markets space dominated by Polymarket and Kalshi, according to The New York Times.

The tech billionaire recently directed staff to create a prediction markets app, the NYT reported on Tuesday, citing anonymous sources. The new app, called Arena, would operate separately from Meta's other platforms like Facebook, Instagram and WhatsApp, which serve billions of users across the globe.

"Users would not wager money, and the app would probably rely on a video game-like points system instead, one person said, though the company had not ruled out the eventual use of real money betting," according to the report.

Activity on prediction markets has swelled into a multi-billion-dollar business with users from all around the world betting billions of dollars while the sector's two largest players, Kalshi and Polymarket, either secured or pursued multi-billion-dollar valuations.

Insiders characterize Meta's push into prediction markets "as experimental but a top priority ... part of a broader push by Mr. Zuckerberg to create new types of apps based on emerging social behavior online," the NYT said.

The rapidly growing platforms have been scrutinized by lawmakers and regulators around the world. Several individuals have been accused of using insider information to make money using Kalshi and Polymarket. Over this past weekend, The Wall Street Journal reported that Polymarket paid dozens of social media creators to film themselves placing fake bets, and sometimes faking wins.