Meta tests prediction-market app Takes with employees

Meta Platforms ↗ 2.90% employees have started testing a prediction-market app that is currently called Takes, The Wall Street Journal News Corp ↗ 2.45% reported on Friday, November 13. The company often runs internal tests like this before a public release, according to the Journal's report, which cited people familiar with the matter.wsj.com

The test puts Meta closer to a fast-growing consumer category led by Kalshi and Polymarket, both private companies. Unlike those platforms, Takes does not let users bet real money.

How Takes works

On Takes, employees bet on the outcomes of questions or events using a currency called "cred," short for credibility, the Journal reported. According to Reuters' summary of the report, the app is not available to the public and it is unclear when, or if, it will be released. Reuters said Meta did not immediately respond to a request for comment.investing.com+1

Meta shares rose in Friday trading, while the broader market fell during a sell-off in technology stocks led by Nvidia ↘ 2.01%, market data from Investing.com showed.investing.com

From Arena to Takes

The project appears to build on work first reported in June. At the time, The New York Times reported that Chief Executive Mark Zuckerberg had sent a small team to build a smartphone app similar to Polymarket and Kalshi. The app was referred to internally as "Arena" and was meant to run separately from Facebook, Instagram, WhatsApp and Messenger. The Times said users would not wager money and that the app would probably use a points system like those in video games. It added that Meta had not ruled out real-money betting later. People inside the company described the effort as experimental but a top priority, and said Meta planned to use its large social audiences to grow the app, according to the Times.nytimes.com

This is not Meta's first forecasting product. The company ran an earlier app called Forecast, which it shut down in 2022, Crypto Briefing noted.cryptobriefing.com

A crowded and scrutinized market

Prediction markets are especially popular with young users. A recent S&P Global ↗ 1.08% Market Intelligence Kagan survey found that just over 60% of Kalshi and Polymarket users are under 35, Reuters reported.investing.com

Regulators and lawmakers are also paying more attention to the sector. On the same day as the Journal's report, the chair of the House Oversight Committee called for a possible ban on bets by government officials because of insider-trading concerns, The Block reported. Kalshi and Polymarket have both said they have tightened controls to stop officials from trading on inside information. Because Takes uses cred instead of cash, Meta can test whether people want social forecasting without dealing directly with the regulatory questions around real-money wagering.theblock.co