Polymarket (POLYMAKET) is reportedly working with Palantir Technologies (PLTR) and TWG Global’s AI unit to help monitor its sports contracts, as scrutiny grows around potential insider trading in prediction markets.
Palantir (PLTR) and TWG AI will assist Polymarket in detecting, preventing, and reporting suspicious trading activity, Bloomberg reported, citing sources. The system will also screen participants against lists of individuals already banned from sports betting, the people said.
The monitoring tools are expected to be deployed on a U.S.-regulated platform that Polymarket is developing, one source said. The company’s main trading platform operates offshore and does not allow U.S.-based users.
Polymarket (POLYMAKET) has also been working with compliance firm Integrity Compliance 360 to flag unusual betting patterns in sports and gaming, people said.
Trading volumes at Polymarket and rival Kalshi have surged over the past year, fueled largely by sports-related contracts. The rapid growth has also raised concerns about how the platforms detect insider trading across markets tied to sports, elections, and geopolitical events.
Kalshi (KALSHI), meanwhile, has taken a more public stance on enforcement. The platform recently referred two insider-trading cases to the U.S. Commodity Futures Trading Commission and formed a committee that will publish quarterly data on flagged trades and investigations.
Prediction markets have faced additional scrutiny in recent weeks over contracts tied to developments in Iran, where users placed bets on potential outcomes linked to the country’s leadership.