US Defense Secretary Pete Hegseth issued a directive prohibiting all Pentagon and defense agency personnel from using nonpublic information to place wagers on prediction markets. The ban covers both classified and unclassified data regarding upcoming military actions.
The policy aims to protect operational security, as Hegseth noted that adversaries monitor these platforms. The Secretary also highlighted that financial stakes could compromise the judgment of logistics staff and analysts involved in military planning.
This decision follows the April indictment of US Army soldier Gannon Ken Van Dyke. Prosecutors allege he used classified details about an operation to capture Venezuelan leader Nicolas Maduro to earn over $400 000 on Polymarket.
Van Dyke, who allegedly participated in the planning of the operation, has pleaded not guilty to the charges. Additionally, in February, Israeli authorities arrested a military reservist and a civilian for similar activities involving bets on military strikes.
