Hegseth warns prediction market bets warp military judgment, endanger troops
Summary
Defense Secretary Pete Hegseth warned military personnel not to use secret or nonpublic information to bet on prediction markets. He said these bets can reveal important information to enemy countries and hurt military operations and troops.Key Facts
- The memo was sent on October 20 to senior Pentagon and Defense Department leaders.
- Using inside information to bet on military outcomes can signal secrets to foreign enemies.
- A U.S. Army soldier was arrested for making $410,000 through bets on Polymarket using confidential info about Venezuela’s leader.
- The Anti-Corruption Data Collective found 152 suspicious accounts that won $8 million betting on military markets.
- The memo bans financial transactions based on any nonpublic information, classified or unclassified.
- Violators may face military or federal charges under the Uniform Code of Military Justice or federal law.
- Bets on military events related to one’s job can affect judgment and decisions.
- Prediction markets like Polymarket and Kalshi don’t allow insider trading but criminal charges are a stronger deterrent.
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