Polymarket is working with Palantir Technologies, the controversial AI-driven U.S. data analytics firm, to develop a sports integrity platform for Polymarket's growing sports prediction markets.
The platform is tapping the Vergence AI engine, a joint Palantir–TWG AI venture, which will help “establish a new standard for sports market integrity controls aimed at preventing, identifying, and reporting anomalous or suspicious activity,” according to an announcement on Tuesday.
The platform will be used to monitor trades, screen prohibited users, enable compliance reporting, and detect anomalies like manipulation and insider activity in real time, and overall ensure trust and fairness as these markets scale.
“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,” Shayne Coplan, founder and CEO of Polymarket, said.
Polymarket and Kalshi expansions
The move comes as the two leading predictions markets by trading volume, Polymarket and Kalshi, continue to expand the world of sports betting, despite some gaming authority and state-level pushback, and as incumbents like DraftKings move into the market.
Over the past several months, DraftKings Predictions has launched in 38 states, including California, Florida, Georgia, and Texas, where traditional sports betting isn’t legal.
Last month, the U.S. Commodity Futures Trading Commission claimed "exclusive jurisdiction" over futures markets, including gaming contracts, in a friend-of-the-brief in support of Kalshi, which is being sued for allegedly violating Nevada's gaming laws.
Kalshi recorded over $1 billion in trading volume on Super Bowl Sunday alone, CEO Tarek Mansour previously said.
Both Polymarket and Kalshi are each in early discussions with potential backers about raising money at valuations near $20 billion, the Wall Street Journal reported Saturday.
Polymarket is in the process of reentering the U.S. following its acquisition of a CFTC-regulated platform, and has opened a waitlist.
Palantir Technologies (PLTR) is a U.S.-based software company co-founded in 2003 by Peter Thiel, Alex Karp, and others. The firm builds data integration and analytics tools used by the U.S. military and in enterprise use cases.