Meta Develops Prediction Markets App ‘Arena’ as Shares Rise Amid Competitive Concerns]

Meta Platforms CEO Mark Zuckerberg has directed company staff to develop a prediction markets platform, according to a person familiar with the company’s plans who spoke with CNBC. The New York Times was first to report the initiative on Tuesday.

The source, who requested anonymity due to the sensitive nature of the undisclosed plans, confirmed to CNBC that the prediction markets app would not involve real-money trading. Instead, the platform will operate using a video game-style points system, though the company may introduce monetary features in the future.

Internally dubbed “Arena,” the app will function as a separate entity from Meta’s social media platforms including Instagram and Facebook, according to two employees with knowledge of the project. While Arena will operate independently, Meta plans to leverage its massive Facebook and Instagram user bases to attract potential traders to the platform.

The company declined to comment on the matter when approached by CNBC.

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DraftKings shares Tuesday

The announcement impacted several industry stocks. Sports betting company DraftKings experienced a decline of more than 2% at its daily low, closing down 2% for the session. Flutter Entertainment, the parent company of FanDuel, also saw shares drop nearly 2% but ended the day up 0.4%.

Both Flutter and DraftKings have faced challenges over the past year due to concerns that prediction market platforms—which offer event-based contracts similar to sports betting—could disrupt their core gambling businesses.

Robinhood, a trading platform that provides access to various prediction market contracts, also experienced a decline following the Times’ initial report.

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