Pentagon directive bans troops from using nonpublic info to bet in prediction markets
Summary
The Pentagon has issued a rule that stops military members from using secret or private information to bet on prediction markets, which are platforms to guess outcomes of events. This rule follows a case where a Special Forces soldier was charged with using military secrets to make bets and win money about the ousting of Venezuela’s president.Key Facts
- Defense Secretary Pete Hegseth sent a memo banning troops and Department of Defense civilians from betting on military events using nonpublic information.
- Using such information to bet can reveal secret plans to enemies and create risks in military operations.
- A Special Forces soldier was charged with using classified details about a mission to bet over $400,000 on Polymarket.
- Troops cannot use either classified or unclassified but private information for trading on prediction markets like Polymarket and Kalshi.
- Breaking this rule can lead to military punishment or criminal charges under U.S. law.
- The concern is that financial interests might influence military judgment and decisions.
- Similar concerns exist outside the military, such as congressional candidates betting on election outcomes and people profiting from private info about ceasefire announcements.
- The White House has also warned against trading on prediction markets using private information.
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