Meta’s internal project aims to launch a points-based prediction platform, pressuring shares of DraftKings and Flutter.
Meta Platforms is developing a prediction markets app called Arena, separate from its social media platforms. The app will initially use a video-game style points system instead of real money, though cash-based trading may be introduced later. The project seeks to leverage Meta’s user base to attract traders to the platform.
DraftKings fell over 2% following the report, while Flutter Entertainment declined nearly 2%. Both companies have faced pressure from competition in prediction markets, which offer sports-related event contracts. Robinhood, which integrates prediction market contracts, also saw a decline.
The move reflects Meta’s interest in expanding into new markets, though the company has not commented on the report. Prediction markets have grown in popularity, raising concerns among traditional sports betting firms.