Investing.com -- Meta is developing a smartphone app similar to Polymarket and Kalshi that would allow users to participate in prediction markets, according to a report from the New York Times, citing two employees familiar with the matter.

Mark Zuckerberg, Meta’s chief executive, recently directed a small team to create the app, which is internally called "Arena." The app would operate separately from Meta’s existing social networking platforms, including Facebook, Instagram, WhatsApp and Messenger.

Users would not bet real money on the platform. The app would likely use a video game-like points system instead, though Meta has not ruled out eventually allowing real money betting, one person said.

Meta plans to grow the app by directing users from its large social networking audiences toward the new platform. More than 3.56 billion people visit one or more of Meta’s apps every day.

Employees described the effort as experimental but a top priority. The project is part of a broader initiative by Zuckerberg to develop new types of apps based on emerging online social behavior, as questions arise about whether Meta’s existing platforms have reached a saturation point.

Meta is also testing other stand-alone apps, including one called Meta Photos that would create new types of media using artificial intelligence, the employees said.

Following reports that the tech giant is developing a standalone prediction app to rival platforms like Polymarket and Kalshi, shares of Robinhood and DraftKings—both of which have recently expanded heavily into event contracts and prediction betting—declined sharply in intraday trading.