So I tested it out, as well as PVP2. Haven't tested the interaction with the arena.
If you haven't faced anyone, you get "NaN", they get taken over by the computer and draw a card, you get elemental mastery.
It appears that if you have faced someone in PVP2, it will load their deck minus any upgraded cards. Being that PVP2 is mainly people with upped cards, the one test I did they had about 15 cards. I guess that means no PVP for a while for us without upped cards, unless we want to play at a massive disadvantage.