Mark Zuckerberg has directed a small internal Meta team to build a standalone prediction-market app codenamed "Arena," a move that puts the social media giant on a collision course with crypto-native platforms like Polymarket and Kalshi.
According to reporting by the New York Times, citing two unnamed Meta employees, Arena is in development as a separate app, distinct from Facebook, Instagram, WhatsApp, and Messenger. The initial design uses a video game-like points system rather than real-money wagering, though real-money betting has not been ruled out. The news sent shares of Robinhood and DraftKings lower in early trading this week.
Meta's potential entry carries weight purely from distribution. The company reported 3.56 billion daily active users across its family of apps as of early 2026. That user base dwarfs every existing prediction-market platform combined, and brings built-in social graph infrastructure that services like Polymarket and Kalshi have spent years trying to replicate through partnerships.
The timing reflects where prediction markets stand heading into the second half of 2026. Trading volume on the sector's leading venues has soared since mid-2025, with Polymarket crossing $10 billion in monthly volume in March 2026 alone — its first month at that level. A separate WSJ investigation found that roughly $1.9 million in bets shown in creator videos promoting Polymarket were not real, underscoring the scrutiny the sector faces even as volumes climb.
