Defence Secretary Pete Hegseth has issued a directive barring US service members from using nonpublic information to place bets on prediction markets such as Polymarket and Kalshi, ABC News reports, citing the Associated Press.
The one-page memo, dated Tuesday, covers both classified and unclassified nonpublic information. Hegseth wrote that adversaries watch these markets and that a financial stake in a military outcome can distort judgement. Violators could face administrative punishment or criminal charges.
The move follows the case of a Special Forces master sergeant charged in April with using his role in the operation against former Venezuelan president Nicolas Maduro to bet on Maduro's removal.
Well-timed bets on a US-Iran ceasefire earlier this year also drew scrutiny, prompting the White House to warn staff against similar trading.
Source: ABC News US
