Meta Eyes Prediction Markets With New ‘Arena’ App Project

U.S.-based tech giant Meta is reportedly developing a standalone prediction markets application, internally known as “Arena,” as CEO Mark Zuckerberg seeks to capitalize on one of the fastest-growing trends in online finance and social engagement.

According to a report from The New York Times, Zuckerberg recently assigned a small team within Meta to build the experimental platform, which would allow users to predict outcomes on events ranging from sports and politics to cultural and economic developments.

The move would position Meta alongside major prediction market platforms such as Polymarket and Kalshi, both of which have seen significant growth over the past two years.

Meta looks beyond Facebook and Instagram

The initiative reflects Zuckerberg’s broader effort to explore new forms of online engagement as Meta’s core platforms mature. Despite Meta’s family of apps attracting more than 3.5 billion daily users, company executives are increasingly searching for emerging consumer behaviors that could support future growth.

Arena is reportedly being developed as a standalone application rather than being integrated directly into Facebook or Instagram.

According to people familiar with the project, Meta plans to leverage its massive social media ecosystem to drive traffic toward the new platform once it launches. The company is also reportedly experimenting with other standalone applications, including an AI-focused media creation platform called Meta Photos.

A new challenger to Polymarket and Kalshi

Prediction markets have become one of the fastest-growing sectors in digital finance. Platforms such as Polymarket and Kalshi allow users to trade on the likelihood of future events, creating markets around elections, sports outcomes, economic data, entertainment awards, and countless other topics.

According to a report, Kalshi and Polymarket processed a combined $50 billion in trading volume during 2025. That figure has already exceeded $130 billion in 2026.

However, Meta’s initial version of Arena is expected to rely on a video game-style points system rather than real-money betting.

Though the company has reportedly not ruled out introducing monetary wagering in the future.

Prediction markets face growing regulatory scrutiny

The sector’s rapid growth has also drawn increased regulatory attention. Prediction markets have faced concerns over insider trading, market manipulation, and the use of non-public information to profit from event-based trading.

One of the most high-profile cases occurred earlier this year when federal prosecutors charged a U.S. Special Forces member for allegedly using confidential information to place successful bets related to a classified operation involving Venezuelan President Nicolás Maduro.

The case intensified scrutiny on regulators overseeing the sector, particularly the U.S. Commodity Futures Trading Commission (CFTC), which has been tasked with monitoring an increasingly complex and rapidly expanding market.

Meta’s next move

While Arena remains under development and may never reach public release, the project highlights Zuckerberg’s continued interest to pursue emerging internet trends.

As prediction markets continue attracting billions in volume and growing cultural relevance, Meta appears determined to test whether the next major social platform could be built around forecasting the future.

Whether Arena becomes a major product or remains an experimental initiative is uncertain. However, its development underscores how prediction markets are increasingly moving beyond crypto-native communities and into the broader technology and financial sectors.

Also read: BitGo Eyes Institutional DeFi Growth Through Morpho Partnership