Mark Zuckerberg Develops Meta’s Arena Prediction Markets App To Compete With Polymarket And Kalshi

Meta is developing a standalone prediction market app called “Arena” to compete with Polymarket and Kalshi, with the project being built by a specialized internal team under the direction of CEO Mark Zuckerberg.

“Meta is developing a prediction market app called ‘Arena’ as sector booms: NYT The app would let users forecast future events using a points-based system rather than cash wagers, the report said, citing people familiar with the matter”

@coindesk

The New York Times reported that users would not wager money and the app would probably rely on a video-game-like points system, while CNBC separately confirmed the project and said the platform would not use actual money to trade on the platform.

@coindesk

Benzinga said Arena would likely run on a video game-style points system rather than real money, though the company reportedly has not ruled out cash betting later.

Meta’s Arena effort is described as independent from Meta’s social networking apps, including Facebook, Instagram, WhatsApp and Messenger, and it is expected to be promoted by leveraging Meta’s user base to direct potential traders to the platform.

Multiple outlets describe Arena as starting with a points-based model, with crypto.news saying the app is expected to use a points-based system initially even as real-money wagering remains a possibility.

The New York Times said the app is internally referred to as “Arena” and would function independently from Meta’s social networking apps, which include Facebook, Instagram, WhatsApp and Messenger.

Benzinga

CNBC reported that the app would instead rely on a video game-style points system, but that money may be used on the app in the future.

CoinDesk described Arena as experimental and a top priority inside the company, and said users would likely rely on a video game-like points system instead of cash even though Meta has not ruled out the eventual use of real-money betting.

The push comes as prediction markets face mounting regulatory challenges, with crypto.news saying state regulators in the U.S. have argued that some prediction market platforms function as unauthorized gambling venues.

“The app, known internally as “Arena,” would likely run on a video game-style points system rather than real money, though the company reportedly has not ruled out cash betting later”

Benzinga

crypto.news also reported that Kalshi updated its members’ agreement to add India to its list of restricted jurisdictions, bringing the total number of restricted locations to 55, after Indian authorities blocked access to Polymarket and warned virtual private network providers against enabling access to prediction market websites.

CNBC said the report on Arena contributed to stock moves, including DraftKings falling more than 2% and Flutter Entertainment’s parent falling nearly 2% after the news.

CoinDesk tied the broader stakes to market scrutiny, noting that regulators have raised concerns about market manipulation, insider information, consumer protection, and the potential for participants to profit from events they may be able to influence.