TLDR
- Polymarket has partnered with Palantir Technologies and TWG AI to build an AI-powered sports market integrity platform
- The system is built on the Vergence AI engine, developed through a joint venture between the three companies in 2024
- It will monitor trades end-to-end, covering order flow, execution data, and settlement activity
- Tools include real-time anomaly detection, participant screening, and automated compliance reporting
- The move comes after state regulators criticized prediction markets for lacking integrity controls
Polymarket announced Tuesday it has teamed up with Palantir Technologies and TWG AI to build an AI-driven platform designed to monitor and protect the integrity of sports prediction markets.
The announcement follows growing pressure from state regulators who argue prediction markets lack the oversight tools required of licensed sportsbooks.
In December 2025, Connecticut’s Department of Consumer Protection said prediction markets had “no integrity controls in place.” Around the same time, New York Attorney General Letitia James warned that the platforms “operate without consumer protections” and aren’t subject to regulatory review.
The new platform is built on the Vergence AI engine, a system developed through a joint venture between Polymarket, Palantir, and TWG AI last year.
Polymarket founder and CEO Shayne Coplan said the goal is to let sports prediction markets grow responsibly. “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,” he said.
How the Monitoring System Works
The platform will monitor trading from start to finish, covering order flow, execution data, and settlement activity both before and after trades take place.
One of its core tools is a near real-time anomaly detection model. This system analyzes trading behavior to flag unusual patterns, coordinated activity, or potential manipulation.
A participant screening tool, called “Prohibited Trader Screening,” uses relationship analysis to identify and block restricted users from accessing markets.
The platform also includes a dedicated operations center to manage flagged trades and handle escalation workflows.
Compliance reporting is automated, generating trade alerts, documentation, and supervisory records for regulatory review.
Palantir co-founder and CEO Alex Karp said the system is built to support the expansion of sports prediction markets. “Together, we are strengthening the security and integrity of the platform,” he said.
TWG AI Global Head of AI Drew Cukor said market oversight needs to be built into the core infrastructure, not added on later. The tools were developed with the specific risk profile of sports prediction markets in mind.
Prediction Markets Face Broader Scrutiny
Polymarket is not alone in ramping up its monitoring tools. Its main competitor, Kalshi, partnered with IC360 in March 2025 to bring integrity monitoring and prohibited bettor screening to its platform.
Polymarket also uses IC360 and Sportradar through its existing partnerships with the NHL and MLS.
Polymarket’s U.S.-facing platform operates as a Commodity Futures Trading Commission-regulated Designated Contract Market.
The Vergence AI engine was created through the joint venture formed last year, specifically to address the risk and compliance needs of sports-related prediction contracts.
