Defense Secretary Pete Hegseth has issued a directive prohibiting all Department of Defense personnel from using nonpublic information to wager on U.S. military operations. In an October 20 memorandum sent to senior leadership and combatant commanders, the Pentagon chief stated that this ban encompasses both classified and unclassified data, specifically targeting prediction markets like Kalshi and Polymarket. In the Pentagon Battle with Anthropic, We All Lose.
Hegseth emphasized the security implications of such financial activity, warning that the use of these platforms could create dangerous signals for foreign adversaries. “Make no mistake why this matters.
Our enemies watch movements in these markets,” the secretary wrote in the memo. He cautioned that hostile intelligence services could potentially monitor betting patterns to gain insights into the timing, targets, and tactical movements of American forces.
The department warned that any violations of this policy may lead to administrative discipline or criminal prosecution under federal statutes and the Uniform Code of Military Justice. This strict mandate follows heightened scrutiny regarding the involvement of service members in military-related betting. This story published first on at 3:21 p.m. on Oct.
Federal authorities are currently examining the case of U.S. Army Master Sgt. Gannon Ken Van Dyke, who was arrested in April for his role in the operation that captured Venezuelan leader Nicolas Maduro. Investigators allege that Van Dyke placed over $33,000 in bets on Polymarket concerning Maduro’s removal from power before the raid became public knowledge. U.S. ordering some government staff to depart Saudi Arabia. DOJ watchdog declines investigation in Reflecting Pool case.
The soldier reportedly secured more than $409,000 in winnings from the wagers. Following his arrest, the soldier entered a not guilty plea in a New York federal court. The new directive, which was made public on October 22, 2026, aims to prevent similar security breaches and ensure that military personnel do not leverage sensitive intelligence for personal financial gain. Abdul El-Sayed and Mike Rogers clash in final Michigan Senate debate.
