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Meta Platforms is testing an internal prediction market app called Takes, which allows employees to predict future events without risking real money, The Wall Street Journal reported Friday. The platform uses virtual points to reward accurate forecasts and deducts points when users make incorrect predictions.
The initiative follows CEO Mark Zuckerberg's direction to develop a prediction market product as Meta looks to attract younger users. Meanwhile, the company has not disclosed whether it intends to introduce the application to the public.
The development comes as Polymarket and Kalshi attract growing interest while facing legal challenges across several US states.
The internal application uses a virtual currency known as cred. Employees earn points when their predictions prove correct and lose them when the actual outcomes differ from their forecasts.
One question on the platform asked employees to predict whether former Apple CEO Tim Cook would become Nvidia's next chief executive. The format allows participants to make forecasts without committing personal funds.
Meta previously called the project Arena before adopting the Takes name. Zuckerberg had directed the company to develop a product focused on prediction markets as interest in online forecasting platforms continued to grow.
Unlike Polymarket and Kalshi, Takes currently relies on virtual points rather than financial contracts. Meta has not indicated whether the application will eventually support transactions involving real money.
Research findings indicate that Meta has explored potential partnerships with Polymarket and Kalshi to support the development of its forecasting platform. Nevertheless, none of the companies has announced a formal agreement.
The internal test also marks another attempt by Meta to enter the crowd forecasting market. The technology company previously introduced an application called Forecast between 2020 and 2021.
Meta discontinued Forecast in 2022, reportedly due to high operating costs. Its latest initiative brings the company back into a market where other platforms have since gained popularity among younger audiences.
The research also outlines the potential use of Meta's Llama artificial intelligence technology to generate prediction questions. Such a system could help supply the platform with new forecasting opportunities throughout the day.
Beyond generating questions, the research identifies opportunities to collect information about user preferences and engagement. These findings also point to potential monetization opportunities, although Meta has not announced a commercial model for Takes.
For now, the application remains available for internal employee testing. Meta declined to comment or provide a timetable for a public release on iOS or Android.
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Meta's internal test comes amid growing disputes over the legal status of real-money prediction markets in the United States. Several state regulators argue that these platforms offer gambling services without the required authorization.
Louisiana recently filed a lawsuit against prediction market platforms, becoming the 13th state to pursue enforcement action against the industry. The state argues that these businesses conduct illegal gambling activities.
Polymarket and Kalshi maintain that their event contracts comply with federal law. Both platforms argue that the federal government holds jurisdiction over their operations rather than individual state authorities.
Meanwhile, Commodity Futures Trading Commission Chair Michael Selig addressed the regulatory dispute during the Cantor Convergence conference on Friday. He criticized states for pursuing criminal charges against prediction market executives.
Selig also said the Supreme Court should address disagreements surrounding the legal classification of prediction contracts.
"Somebody says it's gambling; somebody says it's a derivative," Selig said. "That's not something that should be at the risk of going to jail."
While the legal disputes continue, Meta has not disclosed whether real-money contracts form part of its longer-term plans for Takes. The company's current testing model continues to rely exclusively on virtual points.
Meta's Takes introduces a virtual points-based approach to prediction markets as Polymarket and Kalshi face mounting regulatory pressure. The company continues to test the application internally while exploring potential partnerships and AI integration. Meta has yet to confirm a public release date or plans to introduce real-money contracts.