Meta's Arena app revives prediction markets with a points-based twist

Meta is developing a new standalone app called Arena for prediction markets. The project is led by CEO Mark Zuckerberg, who has assigned an internal team to its creation. At launch, the app will use a points-based system to avoid legal issues tied to real-money wagering. Arena will operate as a separate smartphone app, distinct from Meta’s social media platforms. It follows the company’s earlier attempt with Forecast, a prediction markets app launched in 2020 but shut down in 2022 due to low user engagement. This time, Meta is betting on the growing popularity of prediction markets, inspired by rivals like Polymarket and Kalshi.

These platforms allow users to wager on outcomes such as sports results and political events. By avoiding real-money transactions, Arena aims to stay in a legally safer position at launch. Meta’s vast user base of 3.56 billion daily users across its platforms could help drive adoption. Meta’s previous standalone apps under the 'New Product Experimentation' team saw limited success. Arena’s points-based approach may offer a smoother launch. The app’s performance will depend on user interest and regulatory clarity.