Defense Secretary Pete Hegseth has issued a memo cautioning military personnel against placing bets on prediction markets using non‑public information. The warning, titled “Do Not Compromise Military Operations for Personal Financial Gain,” was distributed on October 20 to senior Pentagon leaders, Combatant Command chiefs and field activity directors.
Hegseth’s memo argues that wagers made with classified or sensitive data could provide adversaries with valuable clues about U.S. operations. By tying personal financial interests to operational details, the Secretary says, the military risks exposing strategic information that could be exploited by enemy states.
While the memo does not list specific markets or examples, it underscores the broader principle that any use of non‑public intelligence for private profit is prohibited. The directive is part of a wider effort to safeguard operational security and maintain the integrity of military decision‑making.
The memo was reported by CBS News and subsequently covered by Ars Technica, highlighting the Department of Defense’s ongoing focus on preventing leaks and ensuring that personnel remain disciplined in the face of emerging digital betting platforms.
Hegseth’s warning comes amid growing concerns over the intersection of finance and national security, as prediction markets become increasingly accessible to a wide range of participants. The Department of Defense has reiterated that any violation of these guidelines could result in disciplinary action and jeopardise the safety of service members.
<small>Source: Ars Technica — read the original story there.</small>
