Polymarket has announced a major partnership with Palantir Technologies and TWG AI to develop a comprehensive sports integrity platform, addressing one of the most persistent criticisms facing prediction markets in the United States.

The move comes as state regulators continue questioning whether prediction markets have adequate safeguards to monitor sports event contracts. Connecticut’s Department of Consumer Protection stated last December that prediction markets had “no integrity controls in place,” while New York Attorney General Letitia James warned ahead of the Super Bowl that these platforms “operate without consumer protections” and aren’t subject to proper regulatory oversight.

Vergence AI Engine at the Heart of New System

The new integrity platform will be built on the Vergence AI engine, designed to detect, prevent, and report suspicious activity tied to sports contracts on Polymarket’s US-facing platform. As a CFTC-regulated Designated Contract Market, Polymarket lists contracts covering sports and various other events, making robust integrity controls essential for its continued operation.

Shayne Coplan, Polymarket’s founder and CEO, emphasised the broader industry benefits of the partnership. “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,” Coplan said. “Our goal has always been to give fans new ways to engage with the sports they love while ensuring those markets can grow responsibly on a global scale.”

End-to-End Trading Surveillance

The platform will monitor trading activity comprehensively, tracking order flow, execution data, and settlement activity across the board. The Vergence AI engine is expected to provide multiple layers of oversight, creating what Polymarket describes as a robust defence against manipulation and suspicious trading patterns.

This isn’t just about ticking regulatory boxes. The integrity controls should give sports leagues and teams greater confidence in how their events are being used in prediction markets, potentially opening doors to more official partnerships down the line.

Keeping Pace With Kalshi

Polymarket’s announcement puts it in direct competition with Kalshi, which has also taken an aggressive approach to market integrity. Last March, Kalshi partnered with IC360 to bring integrity monitoring and ProhiBet services to its platform, allowing real-time monitoring of prohibited bettors. Interestingly, Polymarket also uses IC360 and Sportradar for its existing partnerships with the NHL and MLS.

Kalshi went even further in early February with a big expansion of its surveillance and enforcement capabilities. CEO Tarek Mansour outlined how the platform polices insider trading through its Poirot system, which monitors and flags suspicious trades in real time. The exchange has also appointed an independent surveillance advisory committee and brought in partners like Solidus Labs and Daniel Taylor from the Wharton Forensic Analytics Lab.

The race between these two platforms to show proper oversight is clearly heating up. With state regulators watching closely and more jurisdictions considering how to regulate prediction markets, having sophisticated integrity systems isn’t just good practice anymore.

It’s becoming essential for survival in the US market.

What the team thinks

Baz Hartley says:

Smart move by Polymarket to bring in serious players like Palantir, though I’d want to see the actual data sharing agreements and whether these integrity controls will be independently audited. The real test isn’t the partnership announcement, it’s whether state regulators get transparent access to the monitoring systems and what specific triggers will flag suspicious activity. Connecticut and other states have made clear that vague promises won’t cut it anymore, so the devil is entirely in the implementation details and third party verification.