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Fri, 10 Apr 2026

Fri, 10 Apr 2026 White House staff told not to place bets on prediction markets

The gambling platforms have grown in popularity, with some users making wagers on conflicts.
The White House warned its staff last month against using inside information to bet on prediction markets, following concerns that government officials were exploiting their positions for financial gain. The email, sent on March 24th, came after US President Donald Trump announced a temporary halt to military action against Iranian targets. The warning was in response to media reports highlighting the risk of insider trading on platforms like Kalshi and Polymarket. According to one report, a user made nearly half a million dollars by betting on the capture of Venezuelan president Nicolás Maduro before it was publicly confirmed. White House spokesman Davis Ingle denied any wrongdoing, stating that there was "no evidence" to support claims of improper behavior. He emphasized that federal employees are subject to strict ethics guidelines and would not engage in such activities. Prediction markets have gained significant traction over the past year, with more than $44bn in trades. However, concerns have been raised about their potential for manipulation and exploitation, particularly when it comes to betting on conflicts or sensitive information. US lawmakers have weighed in on the issue, with Democrat Congressman Ritchie Torres calling for an investigation into "suspicious" trades. Senator Andy Kim has introduced legislation to ban prediction market bets related to war or military action, citing concerns about corruption and inequality. The controversy highlights the need for greater regulation of the industry, which is currently overseen by the Commodity Futures Trading Commission. As the stakes grow, so too do the risks and consequences of insider trading on these markets.