Meta is quietly developing a prediction markets app internally known as “Arena” that could challenge industry leaders Polymarket and Kalshi, according to a report. Mark Zuckerberg recently tasked a small team inside Meta with building the experimental standalone smartphone app, which would allow users to make predictions on everything from sports and politics to major news events. Unlike existing prediction markets that allow users to wager real money, Arena is expected to initially rely on a video game-style points system, though Meta has not ruled out eventually incorporating real-money betting. The app would operate independently from Meta’s flagship platforms, including Facebook, Instagram, WhatsApp and Messenger. Meta is reportedly hoping to leverage its massive audience, as more than 3.5 billion people use at least one of the company’s apps daily. The effort is part of a broader push by Zuckerberg to identify emerging online behaviors as growth on Meta’s established platforms matures. Prediction-market operators handled more than $50 billion in trades last year, with volume already exceeding $130 billion this year. Meta previously launched a prediction app called Forecast in 2020 during the COVID-19 pandemic, which it shut down in 2022.