Full Breakdown
Defense Secretary Bans DoD Personnel from Betting on Military Operations
By Drooid · · How we work
New Directive Prohibits Use of Nonpublic Information in Prediction Markets
On October 22, 2026, Defense Secretary Pete Hegseth issued a memorandum to senior Pentagon leaders and combatant commanders that bars all Department of Defense personnel from using classified or unpublic information to place bets on U.S. military outcomes. The ban explicitly names prediction-market platforms Polymarket and Kalshi and applies to any financial transaction tied to a military operation.
Rationale and Security Concerns
The secretary warned that betting activity creates a “signal” that foreign intelligence services could monitor to infer American troop movements, targets, and timing. The memo states that such signals could expose sensitive operations to adversaries and endanger service members. Violations may trigger administrative discipline or criminal prosecution under federal law and the Uniform Code of Military Justice.
Prior Incident Highlights Risks
The directive follows an April investigation in which a U.S. Special Forces soldier, identified as Army Master Sgt. Gannon Ken Van Dyke, placed bets totaling more than $33,000 on Polymarket after President Trump announced the capture of Venezuelan leader Nicolás Maduro. The wagers yielded winnings exceeding $409,000. Van Dyke entered a not-guilty plea in a New York federal court, underscoring the legal exposure of service members who trade on insider military information.
Official Statements & Responses
The memorandum, obtained by CBS News, emphasizes that the prohibition covers both classified and unclassified data and that any breach could be pursued under existing military and civilian statutes. Department officials have indicated that compliance monitoring will be integrated into existing security-clearance oversight mechanisms.
Verbatim Quotes
- “Make no mistake why this matters. Our enemies watch movements in these markets,” — Pete Hegseth, defense secretary
- “When an American Service member, intelligence professional, or other Department civilian engages in a financial transaction on a military outcome, they create a signal.” — Pete Hegseth, defense secretary
