Hegseth bans Pentagon staff from betting on military operations

Summarised from 2 outlets · Updated 23 Oct, 03:44 · Archive

Defense Secretary Pete Hegseth has banned Pentagon personnel from using nonpublic information to bet on military operations on prediction markets.

Defense Secretary Pete Hegseth has banned Defense Department personnel from using nonpublic information to bet on U.S. military operations. The prohibition, issued in a memorandum on 20 October, applies to both classified and unclassified nonpublic information and specifically names prediction markets including Polymarket and Kalshi.

Hegseth warned that financial transactions on these markets could expose sensitive military movements to foreign adversaries and endanger American troops. "Our enemies watch movements in these markets," he wrote. "When an American Service member, intelligence professional, or other Department civilian engages in a financial transaction on a military outcome, they create a signal." He added that foreign intelligence services could analyse betting activity to anticipate American military movements, targets and operation timing. Hegseth also noted that financial stakes could compromise judgment, as personnel with money riding on outcomes would have an interest in those outcomes.

Violations could result in administrative discipline or criminal charges under federal law or the Uniform Code of Military Justice. The directive follows the April arrest of U.S. Army Master Sergeant Gannon Ken Van Dyke, a Special Forces soldier involved in an operation related to Venezuelan leader Nicolás Maduro. He was charged after allegedly placing bets totalling more than $33,000 on Polymarket about Maduro's removal from office before the operation became public, reportedly winning over $409,000. He entered a not guilty plea in New York federal court.

How it is being reported

• Hegseth prohibits troops from using ‘nonpublic information’ to bet on prediction markets in new directiveDefense Secretary Pete Hegseth has issued a new directive telling troops they cannot use “nonpublic information” to make bets on prediction markets.New York Post · 23 Oct, 03:27
• Hegseth bans use of nonpublic info for bets on U.S. military opsDefense Secretary Pete Hegseth said the ban applies to classified and unclassified information and includes prediction markets such as Polymarket and Kalshi.CBS News · 22 Oct, 20:21

In this story: Pete Hegseth · Gannon Ken Van Dyke · Nicolás Maduro · Polymarket · Kalshi · Defense Department · Venezuela

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