Meta is considering a partnership with the platforms Polymarket and Kalshi as it continues to develop its own prediction market service, currently dubbed Arena. This directive was given by CEO Mark Zuckerberg, according to sources from NYT.
Sources indicate that Meta is exploring various ways to integrate popular prediction markets into its ecosystem. Simultaneously, the company is working on Arena—an app where users can make predictions about political events, sports, the economy, and other topics.
Initially, the service will use a points system instead of monetary bets, but Meta does not rule out the introduction of financial mechanisms in the future.
Betting on a Fast-Growing Market
Meta's interest reflects the growing popularity of prediction markets, which have become one of the fastest-growing segments at the intersection of financial technology and the crypto industry following the U.S. elections. Polymarket, operating on blockchain infrastructure, and the regulated Kalshi have significantly expanded their audience and trading volumes over the past year.
According to sources, Meta aims to attract at least 100 million active users per month to its service. In the future, certain features of Arena may be integrated into Facebook and Messenger, although a final decision on the product launch has yet to be made.
Meta Doesn't Want to Be Left Behind
This is the second signal in a week regarding the company's intentions to enter the prediction market. Earlier, reports indicated that Zuckerberg tasked a small team with developing a competitor to Polymarket and Kalshi. Now, Meta is also considering collaboration with established players to quickly establish itself in this new segment.
It is worth noting that American gambling associations have urged the U.S. Senate to ban prediction markets related to sports and gambling as part of new cryptocurrency regulation legislation.