There is a gladiator! He's over in the Dream area of the starter zone, rather than the Faded Zone proper.
So if you begin at [The Faded Zone, A Tingle in the Mind] (the room you first started in), you then: >go path >go arena >w >n >up.
Once you're there, there is a weapons rack that you can get a weapon from (LOOK IN RACK), and then just ATTACK the gladiator to start a fight. There are spirits around that can heal you as long as you aren't currently in combat, but at the moment they don't seem to be very keen to do it