Pentagon Chief: Don't Bet on War Moves
A new Pentagon directive tells service members that placing wagers based on inside knowledge of military plans can expose those plans to the enemy.
By Sakura Novak ·
Pentagon leadership is cracking down on military personnel who trade on inside knowledge of war plans. Defense Secretary Pete Hegseth has issued a memo warning troops and officials against betting on outcomes tied to military operations.
The directive, dated October 20, was sent to senior leaders across the Pentagon and combatant commands. Its subject line reads: "Do Not Compromise Military Operations for Personal Financial Gain." CBS News published the document.
Hegseth argues that such activity creates a digital trail that adversaries can read. He wrote that any financial transaction regarding a military outcome creates a signal. That signal can be aggregated, correlated, and exploited by hostile foreign intelligence services to anticipate our movements, targets, and timing.
The Secretary emphasized that troop safety is the priority here. He noted that the lives of service members depend on the enemy not knowing what is coming. The memo states that those who carry the flag into harm's deserve a force that protects them rather than one that exposes them for personal gain.
The warning applies to every type of wagering platform. The rules cover traditional betting services as well as prediction markets like Polymarket and Kalshi. Personnel cannot make financial moves based on nonpublic information. This applies whether the data is classified or unclassified.
This concern follows recent legal action involving a soldier. In April, an Army service member was arrested. Charges alleged the use of confidential data to place bets worth $410,000. The bets were placed on Polymarket regarding the timing of the capture of Venezuelan President Nicolás Maduro.
Investigations also show a pattern of suspicious activity. A report from the Anti-Corruption Data Collective in August found 152 wallets placing longshot bets. These accounts targeted military and defense markets. Together, they won a total of $8 million.
The guidance aligns with past government oversight. Federal law prohibits betting on stocks using nonpublic information. Similar rules apply to government officials with sensitive data. This includes members of Congress, who are barred from trading stocks while holding office.
Looking ahead, Pentagon officials will monitor compliance with these new directives. The aim is to prevent leaks of operational timing. Hegseth stated that betting can warp military judgment. The policy seeks to protect secrets and, by extension, the lives of those who serve.
