Defense Chief Warns Military Betting Could Put Troops at Risk
Defense Secretary Pete Hegseth has warned military personnel not to use private government information to place bets on military events. He said these bets could reveal valuable clues to hostile countries and put American troops in danger.
The warning was sent to senior Defense Department leaders, commanders of major military operations, and directors of Defense Department agencies. Its message was clear: military duties must not be used to make personal money.
Private Information Can Create Dangerous Signals
Hegseth said even a single financial transaction can create a trail that foreign intelligence services may study. When a service member, intelligence worker, or civilian employee places a bet based on information that the public does not have, that person may reveal details about planned military actions.
Enemy governments could compare betting activity with other information to estimate the timing of operations, possible targets, or troop movements. Hegseth said those clues could be combined and used to predict what the United States military plans to do next.
He stressed that the safety of troops often depends on keeping military plans secret. A private bet can weaken that protection if it gives an enemy even a small hint about an upcoming operation.
The concern is not only about classified material. The prohibition covers any nonpublic information, whether it is officially classified or simply not available to the general public.
Rules Cover Many Types of Betting Platforms
The order applies to all financial platforms, including regular betting services and online prediction markets. Military and Defense Department personnel may not make bets based on private information, either on their own or through another person.
The rule also applies when someone uses a third party to place the transaction. A person cannot avoid the restriction by asking a friend, family member, business partner, or another person to make the bet for them.
Violations may lead to administrative action, military discipline, or criminal charges when federal law applies. Military personnel may also face consequences under the Uniform Code of Military Justice.
- Personnel may not use nonpublic information to bet on military events.
- The rule applies to classified and unclassified information that has not been made public.
- Using another person to place the bet is also prohibited.
- Possible penalties include workplace discipline, military punishment, and criminal action.
Financial Stakes May Affect Military Decisions
Hegseth also warned that betting can change the way people perform their jobs. A person with money tied to a military outcome may no longer view events in a fully neutral way.
For example, a military planner who bets on the timing of an attack could develop a personal interest in that date. An intelligence analyst who wagers on the result of an operation could become invested in one outcome instead of judging the evidence fairly.
Even if no secret information is exposed, the financial interest itself may influence professional judgment. Hegseth said military decisions must be based on the mission and the safety of service members, not on a worker’s potential profit or loss.
Earlier Betting Cases Raised Concern
The warning followed several cases involving unusual bets on major political and military events.
In one case, a U.S. Army soldier was arrested and charged with using confidential information to make about $410,000 in bets on when the military would capture Venezuelan President Nicolás Maduro.
Another investigation identified 152 suspicious digital accounts that placed unlikely bets connected to military and defense events. Together, those accounts reportedly won about $8 million. The activity raised questions about whether people with inside access were using private information for financial gain.
There were also suspicious bets connected to a possible ceasefire between the United States and Iran. Several new accounts placed very specific bets shortly before President Donald Trump announced the agreement. The wagers produced hundreds of thousands of dollars in profits.
In a separate case, an aide who worked with the president’s speech materials reportedly earned about $100,000 by betting on statements the president would make during prepared remarks.
Prediction Markets Face Growing Attention
Prediction markets have expanded as more people use them to bet on elections, military actions, government decisions, and other major events. These platforms argue that they provide information about what people expect to happen.
However, the markets have also raised concerns about insider trading. A person with private access to government plans may have an unfair advantage over ordinary users.
The Trump administration has taken a light approach to federal regulation of these markets and is also challenging efforts by states to impose their own restrictions. Federal officials argue that national regulators should have the main authority over the industry.
State governments disagree and want the power to set limits on prediction-market gambling within their borders. Courts have issued different rulings on the issue, and the dispute may eventually be decided by the Supreme Court.
For the military, Hegseth’s message focuses on a narrower point: private financial gain must never compromise military secrecy, professional judgment, or the safety of American troops.