Mark Zuckerberg is wagering on the potential of prediction markets.

According to The New York Times, Zuck aims for Meta to develop its own smartphone application similar to Polymarket, internally referred to as “Arena.” This application would stand apart from Meta’s existing social media platforms, though sources indicated those networks might steer users toward interacting with the app.

Insiders mentioned that the present idea for Arena is viewed as “experimental but a major focus,” and curiously, it wouldn’t include monetary transactions. Instead, it would function as a game where participants earn points for making accurate predictions on specific topics. The insiders noted that financial elements could be introduced in the future.

In the last year, prediction markets have sparked significant gains and debates. By April, trading activity on sites like Polymarket and Kalshi had soared to several billion dollars. Other social media platforms — including X (which partnered with Polymarket last summer) — have tried to leverage this market.

There has also been an increase in legal disputes. A prominent case involves a former senior special forces officer accused of utilizing insider information to gain from the mission to apprehend Venezuelan president Nicolás Maduro. George Santos is also under scrutiny for alleged Kalshi transactions.

States have commenced lawsuits against prediction markets, claiming breaches of gambling regulations. Additionally, the current administration, which strongly supports prediction markets, has taken legal action against states for suing these markets.