Polymarket brings in Palantir to monitor integrity of U.S. sports prediction markets

Polymarket has partnered with Palantir Technologies and TWG AI to deploy an integrity platform powered by Vergence AI for its sports prediction markets. The companies announced on March 10 that the system will run real-time surveillance to monitor trades, screen prohibited users, and flag potential manipulation as activity grows.

The platform is built to track trading patterns, detect anomalies, including possible insider trading, and support compliance reporting. It will check participants against restricted lists and provide surveillance tools Polymarket plans to use as it expands sports-related markets in the United States and abroad.

“Our partnership with Palantir and TWG AI allows us to apply world-class analytics and monitoring to sports markets while building tools that can help leagues and teams maintain confidence in the games themselves,” per Shayne Coplan, founder and CEO of Polymarket.

Vergence AI, a joint venture between Palantir and TWG AI, will power the new controls. According to the companies, the software analyzes market behavior continuously, issues automated alerts, and produces audit-ready reports on suspicious activity.

The partnership arrives as two high-volume prediction platforms, Polymarket vs Kalshi, widen sports offerings amid scrutiny from some state and gaming authorities. Established betting brands are testing demand for prediction products.

Regulatory boundaries are being tested at the federal and state levels. Last month, the U.S. Commodity Futures Trading Commission stated in a court filing that it holds exclusive jurisdiction over futures markets, including gaming contracts, in a brief supporting Kalshi. Kalshi faces a lawsuit in Nevada alleging violations of the state’s gaming laws.

Trading interest has accelerated around major events. Kalshi reported more than $1 billion in volume on Super Bowl Sunday, per CEO Tarek Mansour.

Both Polymarket and Kalshi have held early talks with potential investors about funding rounds that could value each company near $20 billion, according to people familiar with the discussions.

Polymarket is preparing to reenter the U.S. market after acquiring a CFTC-regulated platform and has opened a waitlist for domestic users. The company indicates the new integrity controls are meant to support that relaunch and address concerns from leagues, regulators, and counterparties about manipulation and insider information in sports-linked markets.

Palantir, co-founded in 2003 by Peter Thiel, Alex Karp, and others, develops data integration and analytics software used by U.S. defense agencies and large enterprises. The collaboration applies Palantir’s data-processing capabilities to market surveillance functions used in regulated financial venues, adapted for prediction markets tied to sports outcomes.