In brief
- Polymarket is creating surveillance systems for sports-focused prediction markets with Palantir, the firm known for its work with the U.S. military.
- The initiative comes as lawmakers have called out suspicious trading activity on markets related to U.S. military efforts, while demanding tougher rules.
- In recent weeks, Kalshi has underscored efforts to self-police traders by publicizing two enforcement actions against traders.
Polymarket signaled on Tuesday that it is planning to work with Palantir on developing systems for surveilling sports-focused prediction markets, a move aimed at bolstering its platform’s integrity by enabling the data-analytics specialist to harness user data.
The initiative will center on procedures like transaction monitoring and user screening, using the so-called Vergence AI engine. That tech was developed by Palantir and intelligence systems provider TWG AI through a joint venture created last year, according to a press release.
Using Vergance AI, the companies say they will be able to identify potential market manipulation and insider trading nearly instantaneously. The systems are also set to screen bettors to determine whether they are restricted from participating in certain markets.
By opening up its platform to Palantir and TWG AI, Polymarket is trying to prove that it’s capable of self-policing traders’ activity, amid growing calls from U.S. lawmakers to implement tougher rules through bills like the Public Integrity in Financial Prediction Markets Act.
That bill was sponsored earlier this year…
