# Pentagon directive on prediction market betting > Live situation record from CLSTR: https://clstr.news/situations/pentagon-directive-on-prediction-market-betting > Updated: 2026-10-26T08:01:31.000Z. Sources: 11. Developments: 2. Defense Secretary Pete Hegseth issued a directive titled ‘Do Not Compromise Military Operations for Personal Financial Gain,’ prohibiting Department of Defense personnel—including uniformed troops and civilian employees—from using nonpublic information to place bets on online prediction markets like Polymarket and Kalshi. The policy covers both classified and unclassified information. Hegseth noted that such financial transactions could create signals that hostile foreign actors might aggregate and exploit, thereby jeopardizing operational security and the lives of service members. The directive also aims to prevent financial stakes from warping the judgment of personnel such as analysts or logisticians. The ban follows several high-profile incidents, including a Special Forces master sergeant charged with using his access to bet on the removal of Venezuelan President Nicolás Maduro, as well as concerns regarding wagers placed on U.S. strikes against Iran and specific military rescue operations. Violators may face administrative punishment, federal criminal prosecution, or disciplinary action under the Uniform Code of Military Justice. ## Timeline ### 2026-10-26: Pentagon bans personnel from using insider information for prediction market bets Defense Secretary Pete Hegseth has banned Pentagon personnel from using nonpublic military information to wager on prediction markets, citing significant national security and operational risks. 4 sources. https://clstr.news/cluster/pentagon-bans-personnel-from-using-insider-information-for-prediction-market-bets ### 2026-10-22: Pentagon bans troops from using nonpublic information for prediction market bets Defense Secretary Pete Hegseth issued a directive banning Pentagon personnel from using nonpublic information to bet on prediction markets, citing operational security and potential conflicts of interest. 7 sources. https://clstr.news/cluster/pentagon-bans-troops-from-using-nonpublic-information-for-prediction-market-bets --- Cite as: Pentagon directive on prediction market betting. CLSTR, https://clstr.news/situations/pentagon-directive-on-prediction-market-betting