After spending (some might say wasting) $77 billion on the Metaverse, Zuck is leaning into civilization's most reliable moneymaker: gambling.
What happened: Meta CEO Mark Zuckerberg has reportedly directed a team of engineers to build a new prediction markets app similar to Polymarket and Kalshi, according to The New York Times.
The app, called Arena, will initially use a video game-style points system instead of money to wager on real-world events, although Meta reportedly hasn’t ruled out the possibility of letting users bet with real cash.
Why it’s happening: Meta is looking to use its gigantic user base to break into a lucrative prediction market space, which, by some estimates, will be processing US$1 trillion in trades annually by 2030.
Trading volume on U.S.-based Kalshi more than tripled to US$178 billion between November and May, while Canadian fintech Wealthsimple just announced plans last week to launch its own prediction market app in Canada.
Why it matters: With Meta already boasting nearly 3.6 billion daily users across its platforms (over 40% of the world's population), this new app will introduce an unprecedented number of people to prediction markets.
Meta has already proven it can migrate users from one app to another in its ecosystem. After being aggressively marketed on Instagram and Facebook, Threads became the fastest-growing app in history in 2023, gaining over 100 million users in its first five days. It has, however, struggled to retain many of its new users.
Our take: Many of our online spaces are turning into casinos, encouraging us to bet on everything from a hockey game to the timing of a military strike in the Middle East. In Canada, we’re already seeing the repercussions: Calls to Ontario’s mental health hotline for gambling issues are up over 300% among young men since the province legalized online gambling in 2022.—LA
