Meta Reportedly Develops Prediction Market App Called Arena

Meta, the parent company of Facebook, is developing an experimental app called Arena that would resemble a prediction market platform, CoinDesk reported, citing a New York Times report based on people familiar with the matter. The app would allow users to make forecasts on future events across areas such as politics, sports, entertainment and world affairs.

The development matters because prediction markets have moved further into mainstream financial and political discussion, especially after Polymarket drew major attention during the 2024 U.S. presidential election. CoinDesk said that episode brought billions of dollars in trading volume to the crypto-based platform and helped elevate the sector beyond its earlier niche audience.

Arena is expected to differ from cash-based platforms such as Polymarket and Kalshi by using a video game-like points system, according to the report. However, the people cited said Meta has not ruled out eventually allowing real-money betting. The product was described as both experimental and a top priority inside the company.

Meta has tested similar ideas before. In 2020, it launched Forecast, a prediction-focused product tied to current events and emerging trends during the early stages of the Covid-19 pandemic. That product was later taken down in 2022.

The renewed push comes as companies across crypto and retail trading explore event-based products. CoinDesk noted that Coinbase and Kraken have looked at opportunities in the space, while Robinhood has introduced event-based contracts tied to political and economic outcomes. At the same time, regulators continue to scrutinize whether certain event contracts are legitimate financial instruments or prohibited gaming activity, with concerns including manipulation, insider information and consumer protection.