Meta is developing a prediction markets app called Arena, marking CEO Mark Zuckerberg's latest attempt to capitalize on emerging social behaviors. The experimental platform would operate independently from Facebook and Instagram, targeting the booming prediction markets sector dominated by Polymarket and Kalshi.

Prediction markets have transformed into a cultural force, generating $130 billion in trades this year alone after reaching $50 billion in 2025. These platforms let users bet on outcomes ranging from sports events to political developments, creating new revenue opportunities through transaction fees.

Arena would initially use a video-game-style points system rather than real money, though Meta hasn't ruled out monetary betting later. The company plans to leverage its 3.56 billion daily users across core apps to drive adoption, continuing Zuckerberg's strategy of cloning fast-growing competitor features.

This isn't Meta's first prediction market venture—Forecast launched in 2020 during early pandemic days but closed in 2022. However, the space now faces intense regulatory scrutiny over insider trading, particularly after a U.S. Special Forces member allegedly profited $400,000 from confidential information about a Venezuela operation.