Meta CEO Mark Zuckerberg has instructed senior executives to explore potential partnerships with popular prediction markets Polymarket and Kalshi, according to a New York Times report. The move comes as Meta is actively developing its own similar application, codenamed Arena.
Meta and Kalshi have not yet commented on the report. Polymarket declined to speak with Reuters, which could not independently verify the information.
Meta executives have stated that Arena will differ from its competitors. Unlike Polymarket and Kalshi, which facilitate real-money wagers, Arena will use a points system reminiscent of video games.
Prediction markets have grown significantly in popularity, especially during the 2024 U.S. presidential election cycle. They now function as an asset class allowing investment on diverse events, from central bank policy to sports outcomes. However, they have also attracted scrutiny following reports of substantial profits from well-timed trades ahead of major policy announcements.
Zuckerberg's target audience for Arena is the 18- to 34-year-old demographic. Meta's goal is to attract at least 100 million monthly active users to the platform. The app is currently undergoing internal testing and may not be released to the public. Meta's long-term strategy includes potentially integrating elements of Arena into its Facebook and Messenger services.