Pentagon bars troops from betting on prediction markets
- The Pentagon has barred US military personnel from using nonpublic military information to place bets on prediction markets.
- The directive follows scrutiny of wagers linked to sensitive military operations and classified information.
- The policy aims to prevent personnel from using privileged information for financial gain through event-based trading platforms.
US Defense Secretary Pete Hegseth has barred military personnel from using nonpublic information to bet on prediction markets.
The 20 October directive covers classified and unclassified information, including trades on platforms such as Polymarket and Kalshi.
“Our enemies watch movements in these markets,” wrote Hegseth in the memo, warning that trading could expose sensitive military activity.
The policy aims to prevent wagers from revealing operational details that adversaries could use to anticipate US military actions.
The memo warns that violations could trigger administrative punishment or criminal charges under military or federal law.
The directive follows the case of US Army Master Sgt. Gannon Ken Van Dyke, who faces charges over alleged bets tied to Nicolás Maduro’s capture.
Prosecutors allege Van Dyke used classified mission information to win more than US$400,000 on Polymarket, and he has pleaded not guilty.
The directive strengthens Pentagon restrictions on insider betting, treating nonpublic military information as a security risk even when it is not classified.
