WASHINGTON, D.C. – Following months of pressure from Congressman Eugene Vindman (Va.-07), the Department of Defense (DOD) has issued a new directive prohibiting military service members and civilian personnel from using nonpublic military information to make financial bets, including on prediction market platforms.
“When individuals use sensitive military information to profit from bets on national security events, they jeopardize missions, endanger American lives, and undermine the public’s trust in our Armed Forces,” said Vindman. “As a 25-year Army veteran, I take these threats seriously. I called on the Pentagon to crack down on this dangerous practice, and I’m pleased to see the Department take this important step to protect our troops and strengthen accountability.”
The DOD’s new directive prohibits personnel from using classified or unclassified nonpublic information to make financial transactions on prediction market platforms. Violations may result in administrative discipline or criminal prosecution under federal law or the Uniform Code of Military Justice.
In May, Vindman led a bipartisan group of 15 Members of Congress in urging Secretary of Defense Pete Hegseth to issue a department-wide order prohibiting military personnel from using prediction markets to bet on national security-related events following the U.S. Department of Justice (DOJ) charging an active-duty Special Operations soldier with using classified information tied to the raid that captured Nicolás Maduro to place bets on Polymarket, profiting more than $400,000.
The lawmakers warned that such activity threatens operational security, endangers American service members, and creates incentives to prioritize personal profit over mission success. Full text of the letter can be found here.
BACKGROUND
Vindman, a retired Army colonel who served for 25 years, has also introduced legislation to prohibit Members of Congress and their immediate family members from participating in prediction markets, citing concerns about insider access, public trust, and national security.
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