Pentagon Memo Warns Troops Betting On Operations Could Expose Plans

Defense Secretary Pete Hegseth told senior Pentagon leaders and combatant commanders this week that personal wagers tied to military operations can hand adversaries a read on American plans. A memo he signed October 20, titled "Do Not Compromise Military Operations for Personal Financial Gain," went to Combatant Command heads and directors of Defense Department field activities. CBS News published the document on October 22.

The memo prohibits any financial transaction informed by nonpublic information, whether classified or not, across "all financial platforms." Named services include Polymarket and Kalshi. Hegseth argued that when a service member, intelligence professional or civilian executes a transaction tied to a military outcome, "they create a signal." Hostile foreign intelligence services can then aggregate, correlate and exploit that signal to anticipate American movements, targets and timing, he wrote.

The directive arrives after an April arrest of a US Army soldier charged with using confidential information to place $410,000 in Polymarket bets on when the military would capture Venezuelan President Nicolás Maduro. An August report from the Anti-Corruption Data Collective identified 152 suspicious wallets that took longshot positions on military and defense markets; those wallets collectively won $8 million.

Hegseth framed the stakes around troop safety. "The lives of our Service members often depend on the enemy not knowing what is coming," the memo said. He added that those who "carry our flag into harm's way deserve a Force that protects them" rather than one that exposes them for personal gain. The memo also told commanders that personal financial stakes in military outcomes can compromise operations and put troops at risk.

The Anti-Corruption Data Collective report describes betting activity as a threat to judgment, according to a report on the memo's contents. The document instructs that department personnel may not make any financial transaction informed by nonpublic information.

Hegseth's memo states that the prohibition covers "all financial platforms," including traditional betting services and prediction markets such as Polymarket and Kalshi. The Anti-Corruption Data Collective identified 152 suspicious wallets that placed longshot bets on military and defense markets, and those wallets won a combined $8 million.