Prediction market platform, Polymarket, has rolled out a sweeping update to its rules, tightening restrictions around insider trading and market manipulation as scrutiny over suspicious betting activity intensifies.

The new framework introduces clearer prohibitions on trading with privileged or confidential information, including

  • bans on using stolen data,

  • acting on illegal tips, or

  • participating in markets where a trader could directly influence the outcome.

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Polymarket also said it is strengthening market integrity standards by improving how contracts are designed and resolved. This includes

  • clearer outcome definitions,

  • more reliable data sources, and

  • stricter criteria for settling bets,

areas that have previously drawn criticism during controversial market outcomes.

As part of the overhaul, the platform is ramping up surveillance and monitoring systems to detect suspicious trading patterns while introducing formal channels for reporting abuse. The company is also limiting certain high-risk or ethically sensitive markets that could be more vulnerable to manipulation.

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The rule changes come amid growing concerns that prediction markets are being exploited by traders with insider knowledge. Recent cases involving well-timed bets on geopolitical events, including military actions and ceasefire talks, have raised alarms among analysts and regulators.

Polymarket’s move aligns with a broader industry shift as platforms face mounting regulatory pressure and calls for stricter oversight to prevent abuse while preserving the legitimacy of event-based trading markets.

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