Meta launches Arena, a new prediction market app to rival Polymarket

Meta is entering the prediction markets space with a new app called Arena. The standalone smartphone platform aims to compete with fast-growing rivals like Polymarket and Kalshi. CEO Mark Zuckerberg has assigned an internal team to develop it. Arena will operate separately from Meta’s existing social media apps. It follows the company’s earlier attempt, Forecast, which launched in 2020 but failed to gain traction. This time, Meta believes prediction markets have become more mainstream.

The app will use a points-based system at first to avoid regulatory issues tied to real-money betting. Users on competing platforms bet on outcomes like sports or political events. Meta’s 3.56 billion daily users across its services will help drive adoption.

Meta has struggled in the past with standalone apps. Its 2019 New Product Experimentation team produced few lasting successes. Discoverability and user adoption remain key challenges for new app launches. Arena represents Meta’s latest push into prediction markets. The company hopes to leverage its massive user base to overcome past hurdles. The app will initially avoid real-money wagering to simplify its launch.