Politics · United States · 1 hr ago
Hegseth bars Pentagon staff from betting with nonpublic information
Pete Hegseth barred Pentagon staff from using nonpublic information to bet on US military operations.
Hegseth is the head of the Pentagon, the US Defense Department.
The restriction applies to wagers tied to US military operations.
It targets information about those operations that has not been made public.
Hegseth warned that violations could bring criminal liability.
The ban is meant to keep staff from using sensitive information for betting, and no further steps were specified.
Defense Secretary Pete Hegseth barred Defense Department personnel from using nonpublic information to bet on U.S. military operations.
The Oct. 20 directive covers classified and unclassified information and names prediction markets Polymarket and Kalshi.
Hegseth warned that betting activity could reveal sensitive military movements to foreign adversaries and put American troops at risk.
Violations could lead to administrative discipline or criminal action under federal law or the Uniform Code of Military Justice.
The directive follows scrutiny of a U.S. soldier accused of betting on Venezuelan leader Nicolás Maduro’s removal before news of a military operation became public.
- Who
- Defense Secretary Pete Hegseth issued the directive to Defense Department personnel.
- What
- It bars staff from using nonpublic information to bet on U.S. military operations, including through prediction markets.
- When
- Hegseth sent the memorandum on Oct. 20, 2026; CBS News reported it on Oct. 22.
- Where
- The directive applies to the U.S. Department of Defense.
- Why
- Hegseth said betting activity could signal sensitive military movements to foreign adversaries and endanger American troops.
This story does not have two clearly opposing sides.
President Trump announced that Venezuelan leader Nicolas Maduro had been captured.
A U.S. Special Forces soldier involved in the operation was arrested after allegedly betting on Maduro’s removal before the raid became public.
Hegseth sent a memorandum prohibiting Defense Department personnel from using nonpublic information to bet on U.S. military operations.
CBS News reported the directive.
- Covered information
- Classified and unclassified nonpublic information
- Named prediction markets
- Polymarket and Kalshi
- Potential penalties
- Administrative disciplinary or criminal action
- Alleged bets
- More than $33,000 on Polymarket
- Alleged winnings
- More than $409,000
3 sources
What people are saying
Make no mistake why this matters. Our enemies watch movements in these markets
When an American Service member, intelligence professional, or other Department civilian engages in a financial transaction on a military outcome, they create a signal.