Meta builds Arena prediction market app using points

Meta Platforms is developing a standalone prediction market application called Arena, a project initiated by CEO Mark Zuckerberg that would allow users to forecast outcomes in politics, sports, entertainment, and world affairs. The app, which is still in development, is being designed to operate independently from the company's core social networks like Facebook, Instagram, and WhatsApp.

According to reports citing company insiders, the initial version of Arena is expected to use a video game-style points system rather than real-money wagering. The company has reportedly not ruled out introducing cash betting in the future, but the initial design is seen as a way to test user engagement and navigate the complex regulatory landscape associated with financial prediction markets. Meta plans to leverage its vast existing audience, which exceeds 3.5 billion daily active users across its family of apps, to drive adoption of the new platform.

The move represents a direct challenge to established prediction market platforms like Polymarket and Kalshi, which have seen explosive growth in recent years. The sector gained significant mainstream attention during the 2024 U.S. presidential...