Hegseth Forbids Troops From Betting On Military Outcomes

A figure of $8 million stands at the center of a new directive from the Pentagon regarding unauthorized wagers on military operations. Defense Secretary Pete Hegseth released a memorandum on October 20 warning military personnel against utilizing inside knowledge to place bets on prediction markets. The document, addressed to senior leadership across the Department of Defense, explicitly forbids engaging in financial transactions based on information that is not available to the public.

The subject line of the memorandum, titled “Do Not Compromise Military Operations for Personal Financial Gain,” sets a strict tone for the guidance. Hegseth outlined the specific dangers associated with this behavior, noting that financial platforms can serve as a conduit for intelligence. When service members or civilians place wagers on the timing of military outcomes, they inadvertently create a data point. According to the document, this signal can be aggregated and correlated by hostile foreign intelligence services.

The strategic risk involves the exposure of operational details. The memo states that such data could allow adversaries to anticipate movements, targets, and timing. The text emphasizes that the safety of American personnel relies on the element of surprise. “The lives of our Service members often depend on the enemy not knowing what is coming,” the memo reads.

This directive follows a specific incident involving an Army soldier who was arrested in April. The charges alleged that the individual used confidential information to place bets totaling $410,000 on Polymarket. These wagers were placed regarding the timing of the military’s capture of Venezuelan President Nicolás Maduro.

Beyond individual arrests, data suggests a wider pattern of suspicious activity. An August report from the Anti-Corruption Data Collective indicated that researchers identified 152 wallets engaging in wagers on defense-related markets. These accounts reportedly placed longshot bets and secured a combined payout of $8 million.

Hegseth’s guidance addresses the potential for financial incentives to influence professional conduct. The memo states that betting on military outcomes can warp judgment. The directive applies to all financial platforms, covering both traditional betting services and prediction markets. Specific platforms named in the document include Polymarket and Kalshi.

The policy places a broad ban on utilizing nonpublic information for financial gain. This prohibition extends to all Department of Defense personnel, including civilians. The rule applies regardless of whether the underlying information is classified or unclassified. Hegseth wrote that the men and women who carry the flag into harm’s way deserve a force that protects them.

The memorandum was distributed to Combatant Command leaders and Defense Department field activity directors. The document outlines the specific nature of the prohibited conduct. Personnel are barred from making any financial transaction informed by nonpublic information.

The memo concludes with a statement regarding the standards expected of those in uniform. It asserts that the force must not expose its members to the enemy for personal gain. The guidance seeks to prevent the creation of signals that hostile intelligence services could exploit. The directive was published yesterday by CBS News.