Pentagon Bans Military Personnel From Betting on War Outcomes

Military personnel across the United States are now ordered to stop placing bets on war outcomes using nonpublic information. Defense Secretary Pete Hegseth issued a memo on October 20 that restricts financial transactions tied to military events. The directive targets specific behaviors that could expose operational details to adversaries.

Hegseth sent the memo to senior Pentagon leaders, Combatant Command heads, and directors of Defense Department field activities. The document carries the subject line "Do Not Compromise Military Operations for Personal Financial Gain." CBS News published the full text on October 22. The rule applies to all financial platforms, including traditional betting services and prediction markets like Polymarket and Kalshi.

The memo argues that enemy intelligence services track activity in these markets. Hegseth wrote that when a service member or civilian makes a financial transaction based on a military outcome, they create a signal. Hostile foreign agencies can aggregate and correlate that data to anticipate American movements, targets, and timing. He stated that the lives of service members depend on the enemy not knowing what is coming.

Hegseth emphasized that troops deserve a force that protects them rather than one that exposes them for personal gain. The directive covers all personnel, whether they are in uniform or civilian status. It applies to both classified and unclassified nonpublic information. The goal is to prevent personal financial stakes from compromising operational judgment.

The order follows a criminal case from earlier this year. In April, a US Army soldier was arrested for using confidential information to make $410,000 in bets on Polymarket. The wager concerned the timing of the military's capture of Venezuelan President Nicolás Maduro. This incident prompted a broader review of how military insiders interact with financial platforms.

Concerns about the practice extend beyond that single case. An August report from the Anti-Corruption Data Collective identified 152 suspicious wallets that placed longshot bets on military and defense markets. Together, those wallets won a combined $8 million. The findings suggest a pattern of behavior that aligns with the risks outlined in the new memo.

The memo frames betting as a threat to clear judgment in the chain of command. Hegseth’s message to commanders is that personal financial interests can cloud decision-making. This puts troops at risk during critical operations. The directive takes effect immediately for all covered personnel.