Ballarena is a Breakout variant and as such the player's objective is to clear out all the blocks (which here come in many different shapes) on the screen with the use of a paddle that bounces a ball. What makes it different from other games of its kind is that the paddle is not only moved along the bottom of the screen but in a circle around the blocks located in the middle. There are no borders that stop the ball so it can leave the playing field on any side of the screen. When it has done so four times it is game over for the player. Clearing all blocks from the screen leads to progression to the next stage. Like in Arkanoid it's possible to pick up various power ups. These including giving bonus points, catching the ball with the paddle and a laser that can be used to blast blocks. The game also features various monsters that move around the screen and deflect the ball. They can be killed by hitting them with the paddle.

Every fourth stage is a challenge stage where the game turns into a shoot 'em up similar to Gyruss. Monsters appear in the middle of the screen and the player uses his paddle to shoot them down as quickly as possible. The player then earns points based on number of shots and hits.

The game can be played by one or two players simultaneously.