Hegseth Bars Pentagon Personnel From Betting With Nonpublic Military Information

Defense Secretary Pete Hegseth barred Pentagon and defense agency personnel from using nonpublic military information to wager on prediction markets, citing risks to operations and decision-making.

Hegseth sent the memo Tuesday, Oct. 20, to senior officials at the Defense Department and related defense agencies. It covers nonpublic information on upcoming military operations, whether classified or unclassified, and applies to bets on platforms including Kalshi and Polymarket. The memo warns that such wagers could expose operations, undermine operational security and affect personnel judgment.

An April case involved U.S. Army soldier Gannon Ken Van Dyke, who was charged over Polymarket bets on the capture of Venezuelan leader Nicolás Maduro. Prosecutors alleged he used classified information, helped plan and carry out the operation, and made more than $400,000 from the wagers. Van Dyke pleaded not guilty to all charges.

In February, Israeli authorities arrested and charged a military reservist and a civilian, accusing them of using classified information for Polymarket bets tied to a military strike on Iran.