Hegseth bars wagers using nonpublic military information

Defense Secretary Pete Hegseth issued a directive barring Pentagon and military personnel from using nonpublic government information to place financial wagers, including bets on prediction markets such as Polymarket and Kalshi. The memo, dated October 20, covers information that is classified or unclassified but not public. Addressed to Pentagon leadership, combatant commanders and Defense Department agency and field activity directors, the directive applies to personnel making financial transactions tied to military outcomes. It also covers traditional betting platforms, according to the memo. The articles establish what the directive says but do not describe how the department will implement it or report enforcement under the new policy. Hegseth wrote that wagers tied to operational outcomes could create signals that adversaries might exploit against U.S. forces and assets. He also argued that financial stakes could affect officials’ judgment, citing the example of a logistician with money riding on a strike date. Those rationales are presented in the memo; the directive’s issuance does not independently establish that adversaries have used such market activity to target...