Meta plans to build a prediction markets app, The New York Times reported, as one of Big Tech’s traditional champions seeks to carve out a slice of the retail futures bonanza.
DraftKings and FanDuel’s parent company fell on the news, reflecting the challenge prediction markets, which have flourished amid lax regulations, pose to digital sportsbooks, CNBC noted.
Meta’s app would leverage existing Instagram and Facebook users, using a points system but possibly real cash in the future.
Despite criticism over opaque and deceptive practices, prediction markets’ election favorites won most of the time, a Washington Post analysis found; more liquid in betting markets improves their accuracy, economists told CNN, but could carry negative social costs.
