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When you enter the Arena, you will test your wits and firepower while commanding iconic ships against other players in 3D ship-to-ship combat. Players are grouped into Divisions based on the rarity of their ships and crews, ensuring a level playing field. To move up the Leaderboard, a Captain must defeat a higher-ranked player to assume their position. Daily rewards are calculated based on Leaderboard ranking, with players higher on the leaderboard and in more powerful divisions receiving the greatest rewards.
The Arena is locked to Captains until they reach level 10.
Each battle expends one Arena Ticket.
Playing in the Arena counts towards the total ship battles count of the Daily Missions.
In order to ensure a fair playing field, players are grouped into Divisions based on the rarity of their ships and crew.
Each Division has its own Leaderboard and rewards, with the most valuable rewards available in the more difficult divisions. Leveling your ships and crew will allow you to participate in the most rewarding divisions.
The Commander Division requires that Captains bring Common and Uncommon ships to battle, and requires that all crew used be Common, Uncommon, or Rare crew. As of the Arena tests, rewards for the Commander Division provide schematics for Uncommon and Rare ships.
The Captain Division requires that Captains bring Rare or Super Rare to battle, and requires that crew be between Common and Super Rare rarity. As of the Arena tests, rewards for the Captain Division provide schematics for Rare, Super Rare, and Legendary ships.
The Admiral Division requires that Captains bring their most powerful Legendary ships to battle, and allows crew of all rarities to be used. As of the Arena tests, rewards for the Captain Division provide schematics for Legendary ships.
Arena Battle Stations
The Arena sets up three unique Battle Stations for each division. The Battle Stations you set up in the Arena do not carry over or affect the Battle Stations you use on Missions. The crew that you slot into your Battle Stations will be used both for attacking your opponents, and for defending your position. You may change the crew in your Battle Stations at any time by going into the Division, and changing the Battle Stations.
Attacking and Defending
When attacking an opponent in the Arena, you are immediately launched into a ship combat against your opponent. Your opponent is an AI-controlled version of your opponent's ship and battle stations. If you win, you swap positions with your opponent. if you lose, your position remains unchanged.
When your ship is attacked in the Arena, the Ship Battle Artificial Intelligence (AI) pilots your ship for you. The AI will attempt to use combinations of crew, plus the ship abilities, in a way that simulates an effective human being using the ship. When you attack an opponent in the Arena, you are competing against an opponent’s ship being piloted by the AI.
There is no way for a player to modify the AI controlling their ship at this time.
If there is a draw where both the player and the AI explode, then the defending AI is considered to have retained their rank.
Your rank in each division of the arena is determined by winning and losing battles.
Your rank in each division determines the reward you get from that division that day.
You do not need to participate in a division every day to keep your rank. However, on 2016-07-27 it was revealed in the forums by DB Becca that after 7 days of inactivity in a division, you are dropped out of the rankings (become unranked) for that division. 
The Arena delivers rewards every 24 hours. Those rewards are sent to your in-game mailbox, where they can be retrieved. (Which you will have 3 days to retrieve them.) The rewards are calculated based on your rank when the Arena timer ended. This means it may be possible for you to be bumped lower or higher in the rankings in the last few minutes prior to the rewards depending on the amount of activity present in the Arena. Reward bands are calculated based on the percentage of players participating in the Arena. The more players that participate, the more likely those who were placed well will go on to be placed even better as the new players fight their way up the reward bands.
H.M.S. Bounty schematics were the prize for the Admiral Division.
The prizes for ship battles will change occasionally.
There are also optical changes: enemy abilities are on top instead of on right.