Meta has begun developing an experimental prediction markets application as Chief Executive Officer Mark Zuckerberg looks for new ways to expand the company’s digital ecosystem. The project, internally known as Arena, reflects Meta’s growing interest in online forecasting platforms that have attracted billions of dollars in trading activity.
Although the app remains in the early stages of development, the initiative highlights Zuckerberg’s strategy of identifying fast-growing internet trends and building products around emerging user behavior.
Arena would operate separately from Facebook, Instagram, WhatsApp, and Messenger. According to people familiar with the project, Meta currently plans to use a points-based system rather than real-money wagering. However, the company has reportedly not dismissed the possibility of introducing financial stakes in the future.
The move comes as prediction markets continue to gain momentum worldwide. Platforms such as Polymarket and Kalshi have transformed from niche services into major online destinations.
In 2025 alone, the two platforms generated a combined $50 billion in trading volume. Significantly, that figure has already exceeded $130 billion this year, demonstrating accelerating interest from retail participants.
Meta hopes to leverage its vast audience network to drive adoption. More than 3.56 billion people use at least one Meta-owned platform daily. Consequently, Arena could benefit from unparalleled visibility if the company decides to promote it across its existing services.
Besides attracting users, prediction markets have also captured the attention of investors and corporate competitors. Traditional sports betting companies, cryptocurrency exchanges, and media firms have all entered the sector in search of new revenue opportunities.
However, rapid growth has brought increased scrutiny. Regulators continue to examine concerns surrounding insider information and market integrity. Several high-profile cases have intensified those discussions in recent months, prompting calls for stronger oversight.
Additionally, lawmakers have raised concerns about the broader social implications of prediction-based platforms. Critics argue that such products could encourage excessive speculation and addictive behavior, especially if companies eventually permit real-money participation.
(adsbygoogle = window.adsbygoogle || []).push({});Meanwhile, Kalshi continues to expand rapidly. Chief Executive Officer Tarek Mansour recently confirmed that the company has started discussing a future public offering. However, he emphasized that Kalshi will not pursue an IPO in 2026.
The company’s valuation illustrates its remarkable growth trajectory. Kalshi carried a valuation of roughly $2 billion in June 2025.
Moreover, its valuation climbed to approximately $22 billion following a Series F funding round completed in May this year. Based on current projections, the company could pursue a stock market listing between late 2027 and 2028.
