Meta CEO Mark Zuckerberg instructed company executives on June 26, 2026, to explore partnerships with prediction market platforms Polymarket and Kalshi while developing a similar app called Arena, sources confirmed. According to The New York Times and Reuters, the move aims to position Meta within the growing prediction market sector by combining external collaborations with an internally tested app.
The app is currently in internal testing and may never be launched, sources told Reuters on June 26, 2026. Arena is modeled on existing platforms Polymarket and Kalshi, two of the leading prediction market companies, but differs by initially avoiding cash wagers.
Meta is developing a prediction market-style app called Arena that would allow users to bet on sports, culture, entertainment, politics, and finance using video-game-like points rather than real money, according to The New York Times and Reuters.
Mark Zuckerberg instructed Meta executives to explore partnerships with Polymarket and Kalshi while Arena is being developed, multiple media outlets reported. The New York Times, citing three employees familiar with the discussions, said Zuckerberg dispatched a small internal team to build Arena and directed executives to engage in talks with the two external platforms. Reuters confirmed Zuckerberg “urged his lieutenants to explore partnerships” with Polymarket and Kalshi on June 26, 2026. Cryptopolitan and TheStreet also reported that Meta was pursuing deals with the prediction market companies, though the exact nature of any collaboration remains undefined, according to sources.
Arena’s design centers on a points-based system, which differentiates it from Polymarket and Kalshi’s real-money betting models. TechCrunch, citing the New York Times, described Arena as “experimental but a top priority” for Meta, emphasizing that it would initially function as a game where users earn points for correct predictions. TheStreet and The Week noted that Meta has not ruled out adding real-money betting in the future, suggesting the points system could be a transitional approach to navigate regulatory challenges. People familiar with Meta’s thinking told Reuters that using points would help Arena avoid immediate oversight from the U.S. Commodity Futures Trading Commission, which regulates cash-settled event contracts.
Meta is targeting users between the ages of 18 and 34 for Arena, aiming to capture a younger demographic active on social media and interested in gaming and markets, sources told the New York Times. Internal targets reportedly include reaching at least 100 million monthly active “predictors” on the platform. Meta plans to launch Arena as a standalone app, separate from its existing social media services such as Facebook, Instagram, WhatsApp, and Messenger, to test product fit and demand before potential integration.
If Arena proves successful, Meta intends to integrate its features into its core social platforms, including embedding prediction options into group chats, Reels, Stories, and News Feeds, according to reporting by Mother Jones and The Week. The company also plans to leverage its artificial intelligence model, Llama, to automatically generate prediction questions based on trending topics, adding an AI-driven layer to the app’s content. Industry sources said Meta’s social sites could direct users to Arena for specific topics, making prediction activities part of the overall engagement funnel.
No formal partnerships, equity investments, or integrations with Polymarket or Kalshi have been announced or confirmed by Meta. The New York Times emphasized that the nature and outcome of any potential collaborations remain uncertain, with discussions described as exploratory. Meta has not issued any public statement about partnerships or investments in either company. As of late June 2026, Arena remains in an experimental phase with no confirmed live integration with external prediction platforms.
The prediction market sector has grown rapidly, with one report estimating nearly $30 billion in bets processed in May 2026. Polymarket and Kalshi are considered dominant players in this space, setting benchmarks that Meta aims to match or exceed with Arena. The sector is subject to regulatory scrutiny and legal challenges, particularly regarding online gambling and financial oversight. By initially using a points-based system, Meta appears to be positioning Arena to operate outside immediate regulatory jurisdiction, though legal interpretations could evolve.
Meta’s move into prediction markets reflects broader industry trends toward integrating gaming, social media, and financial activities. The company’s approach combines internal development with outreach to established platforms, seeking to establish a foothold in a fast-growing but complex market. The outcome of these efforts, including any partnerships or product launches, remains to be seen as Meta continues to test and refine its strategy.
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