Meta bets on prediction markets with new Arena app launch

Meta is developing a new standalone app called Arena Arena marks Meta’s return to prediction markets after its 2020 Forecast app failed to gain traction. This time, the company believes the concept has become mainstream, driven by the success of competitors. Users on platforms like Polymarket and Kalshi already wager on events such as sports results and political outcomes.

At launch, Arena will use a points-based system instead of real-money betting. This approach avoids the regulatory challenges tied to gambling. The app will operate as a separate smartphone application, distinct from Meta’s social media platforms.

Meta’s previous standalone app experiments, launched under the 'New Product Experimentation' team in 2019, achieved little success. A persistent issue has been convincing users to discover and download new apps. However, Arena may benefit from Meta’s vast user base of 3.56 billion daily active users across its platforms.

In parallel, Meta is also working on another standalone app, Meta Photos. This AI-driven tool will generate new forms of media, showing the company’s broader push into innovative digital products. Arena will initially rely on a points system to engage users without legal complications. The app’s growth will depend on Meta’s ability to leverage its existing audience. The company hopes this new attempt at prediction markets will succeed where its earlier efforts fell short.