Meta is reportedly in the process of creating a prediction markets app internally dubbed “Arena.” This initiative aligns with CEO Mark Zuckerberg’s aim to leverage the booming popularity of platforms like Polymarket and Kalshi.

A small dedicated team at Meta is developing Arena, which is anticipated to function separately from its existing social media platforms, such as Facebook, Instagram, WhatsApp, and Messenger, as reported by the New York Times on Tuesday.

The application will initially utilize a points-based system reminiscent of video games, foregoing real-money betting for the time being. However, it is believed that cash betting could be considered in the future, based on insights from two informed sources.

According to insiders, this project is classified as experimental but holds significant priority within Meta as the company seeks fresh avenues for growth and increased user involvement.

This initiative comes as prediction markets have become one of the most rapidly expanding sectors in online trading and wagering. Kalshi and Polymarket collectively generated a staggering $50 billion in trading volume by 2025, with totals already surpassing $130 billion in the current year.

Meta recorded 3.56 billion daily active users across its suite of applications as of April and intends to harness this vast audience to promote the adoption of Arena.

This strategy is consistent with Zuckerberg’s long-term approach of responding to changing online user behaviors by launching products that reflect burgeoning digital trends. Meta is also exploring other standalone applications, like Meta Photos, designed for AI-driven media creation.

The company had previously dabbed in prediction markets through Forecast, a crowdsourced prediction app released in 2020 during the COVID-19 pandemic, which relied on a points system and was eventually shut down in 2022.

The rising interest in prediction markets has prompted an influx of new players, including gambling operators, cryptocurrency exchanges, and media firms. Brokerage firm Bernstein projected in April that the market could reach $1 trillion in annual trading volume by the year’s end.

This rapid growth in the sector has also sparked increased regulatory attention. U.S. officials and lawmakers have voiced concerns that prediction markets might offer openings for insider trading and market manipulation.

In April, federal prosecutors in New York charged a U.S. Special Forces member with using privileged information to place bets related to a classified operation aimed at Venezuelan President Nicolás Maduro. The allegations suggested that the trader gained over $400,000 from these bets.

U.S. Senator Richard Blumenthal criticized Meta’s alleged plans in a social media post, stating, “Meta has borrowed from slot machines to addict kids to Instagram. Now Zuckerberg aims to transform his company into a prediction market.” He further condemned Meta’s business model as one that capitalizes on addiction.

Meta has borrowed from slot machines to addict kids to Instagram. Now Zuckerberg is transforming his company into a prediction market. Meta’s business model profits from addiction—kids, gamblers, & more. We must act through KOSA & my prediction market bills. https://t.co/e9tG1X8Fho

— Richard Blumenthal (@SenBlumenthal) June 23, 2026

Meta has yet to publicly acknowledge the project, and those familiar with the situation warned that Arena is still in development and may never see the light of day.