Meta explores partnerships with Polymarket and Kalshi for prediction betting app Arena

Mark Zuckerberg wants Meta to build a prediction markets app. The project, internally called Arena, would let users bet on real-world events ranging from elections to sports.

What Arena actually looks like

Arena is being designed as a standalone app, separate from Facebook, Instagram, WhatsApp, and Messenger. The initial version will reportedly use a gamified points system rather than real money. Real-money betting hasn’t been ruled out, though. It’s described as a future possibility.

The project is classified internally as a high-priority experimental venture.

Why Polymarket and Kalshi matter here

Together, the two platforms have seen combined trading volumes surge into the tens of billions of dollars.

Meta has tried this before

Meta already took a shot at prediction markets. The company launched an app called Forecast that ran for roughly two years before being shut down.

The timing is different now. Prediction markets have gone from a niche curiosity to a cultural phenomenon. Major news outlets cite Polymarket odds alongside traditional polling data.

What this means for investors

The 18-34 demographic is particularly relevant. Meta has been losing younger users to TikTok and other platforms for years. A prediction markets app with social features, leaderboards, and the dopamine loop of being right about things could serve as a re-engagement tool for exactly the audience Meta most needs to retain.

The points-based launch strategy is likely designed to buy time on the regulatory front. By starting without real money, Meta can build the product, test engagement metrics, and negotiate regulatory pathways simultaneously, rather than sequentially.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.