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Polymarket Teams Up With Palantir and TWG AI to Monitor Sports Bets

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The prediction market is deploying AI-powered surveillance tools as the industry faces mounting scrutiny over insider trading and market manipulation.

Prediction market Polymarket has partnered with Palantir Technologies and TWG AI to develop a surveillance system designed to detect manipulation and insider trading across its sports markets.

The new platform will be powered by the Vergence AI engine, a joint venture between Palantir and TWG AI created last year. It will monitor trading activity in real time, flag anomalous patterns, screen users against existing banned-bettor lists, and generate compliance reports that can be shared with regulators and sports leagues.

“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,” said Polymarket founder and CEO Shayne Coplan in a press release.

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Palantir CEO Alex Karp called the collaboration a new standard for prediction markets, adding that the companies are working to ensure the platform can scale as the sector expands.

The partnership comes as interest in sports betting on prediction markets continues to rise.

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Meanwhile, Polymarket trading volumes hit an all-time high of $3.55 billion in February, marking a sixth straight month of growth, according to DeFiLlama.

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Crypto World

Kalshi Suffers Court Loss in Ohio over Sports Betting Lawsuit

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Law, CFTC, Court, Kalshi, Prediction Markets

The prediction markets platform argued for an injunction against Ohio authorities, claiming that federal commodities laws superseded state laws on sport event contracts.

An Ohio federal court has denied a motion filed by prediction markets platform Kalshi for a preliminary injunction against Ohio state authorities over allegations that the company was operating in violation of gambling laws.

In an order filed Monday, US District Court for the Southern District of Ohio Chief Judge Sarah Morrison denied Kalshi’s request for an injunction that would have blocked the Ohio Casino Control Commission and state attorney general from regulating contracts on the platform, specifically for sports betting.

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According to the judge, Kalshi had failed to show that the sports event contracts available on the platform were subject to the “exclusive jurisdiction” of the Commodity Futures Trading Commission (CFTC).

“Even if this Court were to find that sports-event contracts are swaps subject to the CFTC’s exclusive jurisdiction, Kalshi has not shown that the [Commodity Exchange Act, or CEA] would necessarily preempt Ohio’s sports gambling laws,” said the opinion and order, adding:

“Kalshi argues that Ohio’s sports gambling laws are field and conflict preempted by the CEA when it comes to sports-event contracts traded on its exchange […] Kalshi fails to establish that Congress intended the CEA to preempt state laws on sports gambling.”

Law, CFTC, Court, Kalshi, Prediction Markets
Source: Courtlistener

The denial pushed back against the narrative from CFTC Chair Michael Selig, who said in February that the federal regulator had “exclusive jurisdiction” over prediction markets and threatened lawsuits against any authority claiming otherwise. Kalshi and prediction platforms face lawsuits in other US states over similar allegations involving unlicensed sports betting.

“This Court does not endeavor to explain why the CFTC has not exercised its authority […] with respect to the sports-event contracts,” said the Monday filing in Ohio. “But the agency’s inaction is not proof that the sports-event contracts are regulated by or permissible under the CEA—and the Court has concluded they are not.”

Related: CFTC chair backs blockchain-based prediction markets as ‘truth machines’

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In a statement to Cointelegraph, a Kalshi spokesperson said that the company “respectfully disagree[d] with the Court’s decision, which splits from a decision from a federal court in Tennessee just a few weeks ago, and will promptly seek an appeal.”

CFTC guidance on prediction markets could be looming

Last week, Selig said that the federal regulator was working to provide guidance regarding prediction markets “in the very near future.” The CFTC chair is the sole Senate-confirmed commissioner in a panel normally consisting of five people.

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