Meta builds Arena app for points‑based prediction markets

Meta is developing a new smartphone application, internally codenamed Arena, to enter the fast‑growing prediction‑market sector. The app will let users place bets using a video‑game‑style points system rather than real money, allowing Meta to avoid immediate gambling regulations. Sources say the project is “experimental but a top priority” and will operate independently of Facebook, Instagram, WhatsApp and Messenger. While cash wagering is not planned for the initial rollout, the design could accommodate real‑money betting later.

Prediction markets have seen trading volumes surge to more than $130 billion this year, with platforms such as Kalshi and Polymarket handling billions in trades. Meta previously experimented with a similar points‑based prediction app, Forecast, in 2020‑22, which was later shut down. The new effort arrives amid heightened regulatory scrutiny, including recent U.S. investigations of prediction‑market platforms and lawsuits over alleged gambling law violations. Meta has not commented publicly on the initiative.