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Meta Developing Arena Prediction-Markets App That Faces UK Licensing Limits

A move from game-like points to real-money wagering would likely trigger gambling or financial licences, raising addiction concerns.

Overview

  • Late June reporting says Meta is building a standalone prediction-markets app called Arena that is being tested internally and may never be released.
  • Meta plans an initial, gamified points system to avoid immediate payments and licensing hurdles while it measures engagement and refines the product.
  • Chief executive Mark Zuckerberg has asked executives to explore partnerships with established platforms Polymarket and Kalshi as Arena is developed.
  • UK regulators have made clear that prediction products offered to British consumers would likely need a Gambling Commission licence and that contracts tied to financial outcomes could fall under the Financial Conduct Authority.
  • Public-health groups and media critics warn the product could normalize gambling for younger users and that any shift to real-money betting would create reputational and regulatory risks as Meta considers integrating features into Facebook and Messenger.