Pentagon warns troops against prediction market betting

The Pentagon is cautioning military personnel against placing bets on prediction markets using information they obtain through their duties. Foreign intelligence services can track betting patterns to anticipate American military movements, targets, and timing, according to a warning from Secretary of Defense Hegseth. This surveillance risk extends to both classified and sensitive unclassified operational information that service members may access.

Personnel who bet using job-related information face potential consequences including disciplinary action under the Uniform Code of Military Justice, security clearance revocation, or criminal charges under espionage laws. Even legal betting activity could be restricted if it involves materially non-public operational details. The warning underscores how seemingly private financial decisions can create security vulnerabilities and legal exposure.