Secretary of War Pete Hegseth is taking a firm stance against Pentagon personnel who are betting on military operations using confidential information. He has expressed concerns that such activities could alert America’s adversaries and jeopardize the safety of U.S. troops.
The Pentagon has issued a stern warning to both service members and civilian staff about the risks of placing bets based on nonpublic government information. This caution is driven by worries about national security and the potential legal ramifications, as outlined by Military Times. The advisory underscores the dangers associated with prediction markets, where wagers based on sensitive military details could undermine operational security.
This directive was formalized in a memo from Hegseth dated October 20, which the Pentagon’s press office shared with the Daily Caller News Foundation.
“The lives of our service members often depend on the enemy not knowing what is coming,” the memo emphasizes. “The men and women who carry our flag into harm’s way deserve a Force that protects them — not one that exposes them to the enemy for personal gain.”
Do Not Compromise Military Operations for Personal Financial Gain OSD010448-26 RES FINAL.pdf
“The memorandum from the Secretary of War regarding predictive markets serves as a reminder that using nonpublic information for financial transactions or to advance private interests is prohibited and may lead to punitive action,” a Pentagon official conveyed to the DCNF. “The Department takes this misconduct very seriously and will act appropriately, including involving the Department of Justice, to ensure accountability for those who engage in such behavior.”
The ban is applicable across all platforms, with particular mention of polymarket and Kalshi. This action follows a recent incident where a soldier was charged after profiting $400,000 from insider information related to a military operation aimed at ousting Maduro, as noted by Military Times.
Hegseth’s memo cautions that when service members engage in betting on military outcomes, they inadvertently create signals that can be intercepted by adversaries and potentially exploited by enemy foreign intelligence agencies, according to Military Times.
“We are restoring lethality, discipline, and a singular focus on fighting and winning our Nation’s wars. Nothing should distract us from that sacred mission,” Hegseth adds in the memo. “Not entertainment. Not a payout.”
