Pentagon Bans Insider Betting, Cites Intelligence Risks
Secretary of War Pete Hegseth is cracking down on Pentagon personnel betting on military operations using insider information, warning that their wagers could tip off America's enemies and put U.S. troops in danger.
Jillian Butler · Oct 27, 2026 · 2 min read
Secretary of War Pete Hegseth is cracking down on Pentagon personnel betting on military operations using insider information, warning that their wagers could tip off America’s enemies and put U.S. troops in danger.
The Pentagon is warning service members and civilian employees against using nonpublic government information to place bets on military operations, citing concerns over national security and potential legal consequences, according to Military Times. The warning highlights the risks posed by prediction markets, where wagers involving sensitive military information could compromise operational security.
This ban was enacted via an Oct. 20 memo from Hegseth 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 reads. “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.”
“The memorandum from the Secretary of War regarding predictive markets is a reminder that engaging in financial transactions using nonpublic information, and using nonpublic information to further private interests, is prohibited and may result in punitive action,” a Pentagon official told the DCNF. “The Department takes this misconduct seriously and will take appropriate action, to include coordinating with the Department of Justice, to ensure anyone who engages in this misconduct is held accountable.”
The ban extends to all platforms, specifically citing polymarket and Kalshi. This comes six months after a soldier involved with ousting Maduro was charged with using insider information to make $400,000 betting on the raid on Polymarket, Military Times reports.
Hegseth’s memo warns that signals are generated when servicemembers engage in betting on a military outcome. This signal can then be monitored by adversaries and exploited by enemy foreign intelligence services, per Military Times.
“We are restoring lethality, discipline, and singular focus on fighting and winning our Nation’s wars, and nothing should distract us from that sacred mission,” Hegseth adds in the memo. “Not entertainment. Not a payout.”
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All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact [email protected].