Pete Hegseth Bans DoD Personnel From Betting on Military Operations

Defense Secretary Pete Hegseth issued a memorandum on October 20 banning all Department of Defense personnel, including military members, intelligence professionals, and civilians, from using nonpublic information to bet on U.S. military operations. The directive specifically identifies prediction markets such as Polymarket and Kalshi, warning that financial transactions by insiders create signals that foreign adversaries can analyze to anticipate troop movements, targets, and timing.

Hegseth stated that financial stakes can "warp judgment" for analysts and logisticians, arguing that the lives of service members depend on the enemy remaining unaware of upcoming operations. Violators of the policy face administrative, disciplinary, or criminal action under federal law or the Uniform Code of Military Justice.

The ban follows the April arrest and indictment of U.S. Army Master Sgt. Gannon Ken Van Dyke. Van Dyke, a Special Forces soldier, allegedly used classified information regarding the operation to capture Venezuelan leader Nicolás Maduro to place over $33,000 in bets on Polymarket, netting more than $400,000. Van Dyke has pleaded not guilty.

Similar concerns regarding insider trading have appeared elsewhere in the government. The White House previously warned staff against using private information for trading following suspicious bets on a U.S.-Iran ceasefire, and a teleprompter operator was placed on leave in July for betting on presidential speeches. Additionally, Kalshi suspended three congressional candidates for wagering on their own elections.