Polymarket enlists Palantir AI to monitor sports betting before issues escalate

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Betting on favorite teams has always been popular among sports enthusiasts, but the rise of online wagering has simplified the casual bet. While legal sports betting produced $10 billion in the first nine months of 2025, prediction markets such as Polymarket and Kalshi are increasingly becoming the preferred venues for high-stakes gamblers, surpassing traditional sportsbooks.

However, the industry is facing heightened examination following the arrest of over 30 individuals in October on charges related to illegal betting and insider trading, a group that includes Miami Heat player Terry Rozier.

Observing the intense scrutiny facing both physical and online sports betting, prediction markets are proactively implementing measures to prevent similar issues from escalating on their own systems.

According to Bloomberg, Polymarket is set to utilize software created by Palantir and investment firm TWG Global to oversee sports betting activities within the U.S. This initiative stems from a joint venture formed last year to integrate AI into finance; the new system is designed to identify users who are already prohibited from betting.

“Collaborating with Palantir and TWG AI enables us to implement top-tier analytics and oversight for sports markets,” CEO Shayne Coplan stated in comments to Bloomberg.

This decision marks a shift in strategy for Polymarket. As reported by the Wall Street Journal, Coplan previously claimed in December that the platform could regulate itself through user reports of potential misconduct.

“As soon as insider trading is suspected, it is highlighted on X and becomes immediately apparent on Polymarket. It doesn’t happen in the shadows,” Coplan explained to the WSJ.

Getting ahead of potential examination

Polymarket has recently faced backlash due to users profiting massively from wagers on geopolitical events moments before they occurred. For instance, in January, a user who had opened an account just a week prior bet that Venezuelan President Nicolás Maduro would leave office by the end of the month. The trader’s profit of over $400,000 sparked widespread allegations of insider trading.

Similarly, in February, a user earned $553,000 by predicting the death of Iranian Supreme Leader Ali Khamenei just hours before an Israeli attack on February 28 resulted in his death.

Over the past few months, prominent sports leagues like the National Hockey League and Major League Soccer have established partnerships with Polymarket.

Bloomberg notes that the Palantir technology will be restricted to U.S. users. Although the Commodity Futures Trading Commission (CFTC) recently approved Polymarket’s return to the U.S., the domestic platform isn’t fully live, so most American traders use VPNs. Meanwhile, states such as Nevada, Massachusetts, and Michigan have filed lawsuits against Polymarket and Kalshi for alleged breaches of state gambling regulations.