Meta Unveils Prediction Markets App 'Arena' To Rival Polymarket and Kalshi

Facebook’s parent company, Meta, is reportedly working on a prediction market app named ‘Arena’ to compete with leading platforms Polymarket and Kalshi. According to a New York Times report citing employees familiar with the matter, CEO Mark Zuckerberg has formed a team to develop the app. Unlike existing prediction markets, Arena may not involve real money wagering; instead, it could rely on a video game-like points system. However, the possibility of monetary bets remains open. The app will operate independently of Meta’s other platforms, such as Facebook, WhatsApp, and Instagram. Meta plans to leverage its large social networking audiences to promote Arena. This initiative is part of Zuckerberg’s broader push to create applications based on emerging online trends, characterized as a top priority. Meta has also been exploring crypto payments, including stablecoin integration; it already uses Circle’s USDC for creator payouts on Solana and Polygon networks, and is reportedly working on launching its own stablecoin. Prediction markets face increasing scrutiny from regulators in the U.S. and abroad. State regulators argue these platforms operate as illegal gambling sites, and gaming groups are lobbying to prohibit sports betting on them via the CLARITY Act. In South Korea, authorities recently launched a probe into illegal gambling on Polymarket. Additionally, Polymarket is under scrutiny following a Wall Street Journal investigation alleging it paid creators for misleading advertisements, though the FTC has not commented on any investigation.

Source: https://coingape.com/meta-develops-prediction-markets-app-arena-to-challenge-polymarket-and-kalshi/