Meta is reportedly working on a new smartphone application called 'Arena', aimed at tapping into the burgeoning prediction markets sector. This initiative, led by CEO Mark Zuckerberg, comes in response to the rapid expansion of platforms like Polymarket and Kalshi.
The app is being developed by a dedicated team within Meta and is expected to function separately from the company's social media platforms such as Facebook, Instagram, WhatsApp, and Messenger, as reported by the New York Times.
Initially, Arena will implement a points-based system reminiscent of video games, rather than facilitating real-money betting. However, sources indicate that cash wagering could be introduced down the line.
Insiders describe the project as experimental but emphasize its importance as Meta seeks new growth opportunities and ways to engage users.
Prediction markets have quickly become one of the most dynamic areas of online trading and betting, with Kalshi and Polymarket achieving a combined trading volume of $50 billion in 2025, and total volumes surpassing $130 billion this year.
With 3.56 billion daily active users across its platforms as of April, Meta aims to leverage this vast audience to promote Arena's adoption.
This move aligns with Zuckerberg's ongoing strategy of adapting to changes in online user behavior by launching products that reflect emerging digital trends. Meta is also exploring other standalone applications, including Meta Photos, an AI-driven media creation tool.
Previously, Meta ventured into prediction markets with Forecast, a crowdsourced app launched in 2020 during the COVID-19 pandemic, which utilized a similar points-based system but was discontinued in 2022.
The rise of prediction markets has attracted a variety of new participants, including gambling operators, cryptocurrency exchanges, and media companies. A report from brokerage Bernstein in April suggested that the sector could reach an annual trading volume of $1 trillion by the decade's end.
However, this growth has not gone unnoticed by regulators, as U.S. authorities have expressed concerns regarding potential insider trading and market manipulation. In a notable case, federal prosecutors in New York charged a U.S. Special Forces member for using confidential information to place bets related to a covert operation against Venezuelan President Nicolás Maduro, reportedly earning over $400,000.
U.S. Senator Richard Blumenthal voiced his disapproval of Meta's plans in a social media post, criticizing the company for allegedly exploiting addiction through its platforms. He stated, 'Meta copied slot machines to addict kids to Instagram. Now Zuckerberg is turning his company into a prediction market.'
As of now, Meta has not officially confirmed the Arena project, and sources caution that it remains in development and may never be launched.