Meta is reportedly developing a standalone prediction market app, internally known as Arena, as CEO Mark Zuckerberg looks to expand the company’s presence beyond social media into one of the internet’s fastest-growing areas.
According to a report by The New York Times, the project has received Zuckerberg’s approval. It is currently being developed as an independent smartphone application rather than as an integration with Facebook, Instagram, or Threads.
Although Arena will operate as a separate app, the report says Meta’s existing social media platforms could eventually direct users to it to boost engagement.
Sources familiar with the project described Arena as an experimental initiative that has become a top priority within the company.
Unlike existing prediction market platforms such as Polymarket and Kalshi, Arena is not expected to involve real-money betting at launch.
Instead, users will reportedly earn points by correctly predicting event outcomes across various topics, creating a game-like experience rather than a gambling platform.
However, sources indicated that monetary rewards or real-money features could be introduced in the future, although no final decision has been made.
Prediction markets have experienced explosive growth over the past year, allowing users to forecast the outcomes of elections, sporting events, economic developments, entertainment awards, and other real-world events.
According to reports, trading volumes on leading platforms such as Polymarket and Kalshi reached tens of billions of dollars by April, highlighting the industry’s growing popularity.
Several major technology companies have also begun exploring opportunities in the space.
Social media platform X previously announced a partnership with Polymarket, further integrating prediction markets into online conversations and news discussions.
Despite their rapid growth, prediction market platforms have also attracted increasing legal and regulatory scrutiny.
Authorities have investigated several high-profile cases involving prediction market trading, including allegations that individuals used confidential or insider information to profit from event outcomes.
Former U.S. Congressman George Santos has also reportedly come under investigation over alleged trading activity involving the prediction platform Kalshi.
At the same time, several U.S. states have filed lawsuits against prediction market operators, arguing that some of their activities violate state gambling laws.
The legal landscape has become even more complicated as the current U.S. administration has challenged some of those state actions in court, reflecting ongoing debate over how prediction markets should be regulated.
If Meta ultimately launches Arena, the app would represent another significant expansion of the company’s growing portfolio of standalone products.
In recent months, Meta has introduced several new applications and AI-powered tools as it seeks to diversify beyond its core social networking platforms.
While Arena remains under development and Meta has not officially announced the product, the reported project underscores the company’s continued push into emerging digital experiences where social interaction, artificial intelligence, and online communities increasingly intersect.
