Pentagon Bans Use of Nonpublic Military Information for Betting

Defense Secretary Pete Hegseth has banned Defense Department personnel from using nonpublic information to bet on U.S. military operations, according to CBS News. The directive specifically names prediction markets Polymarket and Kalshi and warns that violations could result in administrative, disciplinary or criminal action.

The Oct. 20 memorandum addresses information that is either classified or unclassified. CBS News reported no West Virginia-specific gambling rule or player-access change.

Pentagon Warns Betting Activity Could Reveal Military Plans

The memorandum, sent to senior Pentagon leadership and combatant commanders, frames military-related prediction-market transactions as a national security concern.

Hegseth warned that foreign intelligence services could analyze betting activity to anticipate military movements, targets and the timing of operations. Such transactions could expose sensitive information and endanger American troops, he said.

“Make no mistake why this matters. Our enemies watch movements in these markets,” Hegseth wrote.

The restriction concerns the use of nonpublic information, not only classified material. That distinction places unclassified information that has not been made public within the directive’s scope as well.

Violations could trigger action under federal law or the Uniform Code of Military Justice, according to the memo.

Directive Follows Scrutiny of Military-Related Bets

The directive comes amid scrutiny of service members participating in prediction markets tied to military events.

CBS News cited the April arrest of U.S. Army Master Sgt. Gannon Ken Van Dyke, a Special Forces soldier accused of betting on Venezuelan leader Nicolas Maduro’s removal from office using information about a raid before it became public.

Investigators believe Van Dyke placed more than $33,000 in bets on Polymarket that produced winnings exceeding $409,000. He pleaded not guilty in New York federal court, and the allegations remain unresolved.

The report leaves open how broadly the Defense Department will enforce the directive and whether it will issue additional guidance. It does not identify a separate West Virginia regulatory response.

More from playwv.com – Polymarket Maduro Betting Case Tests Reach of Federal Law – Polymarket Seeks Injunction Against Ohio Sports Betting Enforcement – Nearly 150 Tribes Urge Supreme Court to Review Third Circuit’s Kalshi Ruling

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Source: As reported by CBS News.