Hegseth bans DoD personnel from using nonpublic info to bet on U.S. military operations

October 22, 2026 / 3:21 PM EDT / CBS News

Washington — Defense Secretary Pete Hegseth has banned Defense Department personnel from using nonpublic information to bet on U.S. military operations, according to a memorandum obtained by CBS News.

In the Oct. 20 message to senior Pentagon leadership and combatant commanders, Hegseth said the prohibition would apply to classified and unclassified information and specifically includes prediction markets such as Polymarket and Kalshi, which are named in the memo.

The defense secretary warned that financial transactions on prediction markets could expose sensitive military movements to foreign adversaries and endanger American troops.

"Make no mistake why this matters. Our enemies watch movements in these markets," Hegseth wrote. "When an American Service member, intelligence professional, or other Department civilian engages in a financial transaction on a military outcome, they create a signal."

Hegseth warned that foreign intelligence services could analyze betting activity to anticipate American military movements, targets and timing of an operation. The memorandum said violations could result in administrative disciplinary or criminal action under federal law or the Uniform Code of Military Justice, the laws and regulations governing the U.S. military.

The directive follows growing scrutiny of service members participating in…

Original source: https://www.cbsnews.com/entertainment/