Meta’s new prediction market app Arena could bring betting to 3 billion users
Mark Zuckerberg has directed a small Meta team to build a prediction market app called Arena, which would initially use a points-based system rather than real money to sidestep CFTC oversight. The news sent shares of DraftKings, Flutter Entertainment, and Robinhood lower, reflecting the competitive threat Meta's 3 billion monthly active users pose to existing platforms like Polymarket and Kalshi. Arena would operate independently from Facebook and Instagram. Meta has not ruled out real-money betting in the future, which would require regulatory approval. The announcement comes as the CFTC is actively rewriting prediction market rules, and existing platforms are already grappling with insider trading scandals and monetization challenges.