Meta is reportedly developing a new prediction markets app called Arena as the social media giant looks to capitalize on the fast growing popularity of platforms like Polymarket and Kalshi.
Key Takeaways
- Meta is reportedly building a standalone prediction markets app called Arena.
- The platform is expected to use a points based system rather than real money betting at launch.
- Mark Zuckerberg has reportedly made the project a high priority initiative.
- The move could position Meta as a competitor to Polymarket and Kalshi, two of the fastest growing prediction market platforms.
What Happened?
Meta is reportedly preparing to enter the rapidly expanding prediction markets sector with a new standalone app known internally as Arena. According to reports, CEO Mark Zuckerberg has directed a small team within the company to develop the platform as part of Meta’s broader effort to explore emerging social behaviors and new digital experiences.
The app is expected to operate independently from Facebook, Instagram, WhatsApp, and Messenger, although Meta could leverage its massive existing user base to drive adoption if the product moves forward.
NEW: Meta is developing a standalone prediction-market style app, internally dubbed “Arena,” inspired by the rapid growth of Polymarket and Kalshi.
— Frank Chaparro (@fintechfrank) June 23, 2026
The app would initially use a points-based system rather than real-money wagering, though Meta has not ruled out betting features… pic.twitter.com/fpuHr4Czq4
Meta Bets on a Growing Trend
Prediction markets have become one of the most talked about areas of the internet over the past year. Platforms such as Polymarket and Kalshi allow users to forecast outcomes ranging from elections and sporting events to economic data and cultural moments.
The growing popularity of these platforms has attracted significant attention from both investors and technology companies. Reports indicate that Polymarket and Kalshi have together generated more than $130 billion in activity during 2026, highlighting the increasing demand for prediction based products.
Meta now appears interested in bringing a similar experience to its ecosystem through Arena.
Unlike traditional prediction market platforms, Arena is reportedly expected to launch with a video game style points system. Users may earn points, rankings, badges, and other rewards for making accurate predictions rather than wagering real money.
However, reports suggest that Meta has not completely ruled out the possibility of introducing monetary betting functionality in the future.
How Arena Could Work?
While details remain limited, Arena is expected to allow users to make predictions across several categories, including:
- Sports
- Elections
- Entertainment
- Technology
- Major world events
The focus on rewards and rankings rather than direct financial risk could help Meta attract a broader audience while avoiding some of the regulatory challenges associated with real money prediction markets.
The company is reportedly viewing the project as experimental, though sources familiar with the matter have described it as a top priority initiative.
Meta’s History With Prediction Platforms
This is not Meta’s first attempt to enter the prediction space.
In 2020, the company launched Forecast, a crowdsourced prediction platform that allowed users to make predictions about real world events. Despite initial interest, the app failed to achieve significant traction and was eventually shut down in 2022.
The reported development of Arena suggests Meta believes market conditions have changed substantially since then.
The success of platforms such as Polymarket has demonstrated stronger consumer interest in prediction markets than was evident several years ago, potentially creating a more favorable environment for a new entrant.
Market Reaction Highlights Competitive Concerns
News of Meta’s reported plans appeared to impact several companies connected to sports betting and prediction markets.
Following reports about Arena, shares of DraftKings, Flutter Entertainment, the parent company of FanDuel, and Robinhood experienced declines. Investors have increasingly debated whether prediction markets could challenge traditional sports betting operators by offering alternative ways for users to engage with event outcomes.
Although Arena is not expected to use real money at launch, Meta’s enormous user base could make it a significant competitor if the company decides to expand the platform over time.
Beyond Arena: Meta’s Broader App Strategy
Arena is reportedly one of several experimental products currently being explored by Meta.
Another project known as Meta Photos is said to focus on artificial intelligence generated media, including images, visual effects, and other forms of AI created content.
These initiatives reflect Meta’s continuing efforts to diversify beyond its core social media products and identify new areas for user engagement and future growth.
CoinLaw’s Takeaway
In my experience, the biggest story here is not whether Arena launches with points or real money. What stands out is that Meta sees prediction markets as a major emerging internet trend worth pursuing. I found it particularly notable that the company is reportedly dedicating resources to a standalone app instead of simply adding the feature to Facebook or Instagram. If Arena reaches the public and gains traction, Meta could introduce prediction markets to billions of users and significantly reshape competition in a sector currently led by Polymarket and Kalshi.
