Hegseth Memo Bars Use of Nonpublic Military Data in Any Betting

Defense Secretary Pete Hegseth barred Defense Department personnel on October 20 from placing any bet informed by nonpublic military information, a restriction he says is needed to keep adversaries from reading market activity as an indicator of upcoming U.S. operations.

The memo, released publicly by CBS News on October 22, carries the subject line "Do Not Compromise Military Operations for Personal Financial Gain" and was addressed to senior Pentagon leaders, Combatant Command heads and directors of Defense Department field activities.

Hegseth wrote that when a service member, intelligence professional or civilian in the department makes a financial transaction tied to a military outcome, "they create a signal." He said foreign intelligence services can combine and use that signal to anticipate American movements, targets and timing. The memo adds, "The lives of our Service members often depend on the enemy not knowing what is coming."

The prohibition applies to "all financial platforms," including traditional bookmakers and prediction markets such as Polymarket and Kalshi, and covers both classified and unclassified information, the memo states.

The order follows a criminal case from April, when a U.S. Army soldier was arrested and charged with using confidential information to earn $410,000 in Polymarket bets on when the military would capture Venezuelan President Nicolás Maduro. The Anti-Corruption Data Collective reported in August that it found 152 suspicious wallets placing longshot wagers on military and defense markets; those wallets collected $8 million combined.

Hegseth's memo further argues that personal financial stakes in military outcomes can compromise operations and put troops at risk, and tells commanders and department leaders to enforce that position.