world-economy

Meta's Prediction Markets App Rattles Sports Betting Stocks

Meta Platforms is developing a prediction markets application after CEO Mark Zuckerberg directed staff to build it. The app, internally called "Arena," will operate separately from Meta's Facebook and Instagram properties, though the company plans to leverage its massive user base to drive adoption.

The platform will initially use a points-based system similar to video games rather than real money, though actual cash trading may be introduced later. Meta declined to comment on the development.

News of the project sparked immediate market reaction. DraftKings shares fell more than 2% following the announcement, while Flutter Entertainment declined nearly 2% but remained positive on the day. Trading platform Robinhood also slipped. Both sports betting operators have faced investor concerns about how prediction market platforms could disrupt their core gambling businesses.