Pentagon bans staff from betting with undisclosed military information

Pentagon bars wagers tied to undisclosed military information

US Defense Secretary Pete Hegseth has barred all Pentagon staff from using undisclosed information to place wagers on upcoming military action, including on prediction markets (platforms where people can bet on future events) like Kalshi and Polymarket.

The directive was sent in a memo to senior Pentagon and defense agencies on Tuesday. It prohibits all Department of War personnel from engaging in financial transactions using nonpublic information, whether classified or unclassified.

Security and judgment cited

In the memo, Hegseth warned that enemies watch movements in these markets and said the lives of service members often depend on the enemy not knowing what is coming. He also pointed to the risk that financial stakes could warp judgment, giving someone an interest in a specific outcome if they have a bet on it.

Past cases linked to the directive

• In April, US Army soldier Gannon Ken Van Dyke was indicted for allegedly using classified information about the operation to capture Venezuelan leader Nicolás Maduro to make more than $400,000 on Polymarket. He has pleaded not guilty to all charges.
• In February, Israeli authorities arrested and indicted a military reservist and a civilian for allegedly using classified information to place bets on Polymarket related to Israeli military strikes on Iran.

What is confirmed

The ban applies to all Department of War personnel using nonpublic information (classified or unclassified) for financial transactions related to upcoming military action. It explicitly names Kalshi and Polymarket. The stated reasons in the memo are operational security and the risk of financial stakes warping judgment.

Sources

• Cointelegraph

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