A recent official memorandum from the U.S. State Department has instructed American diplomats to refrain from using confidential information on gambling websites and online prediction markets. The directive states that “the misuse of non-public information by government employees for financial gain is a very serious offense and will not be tolerated,” following concerns about officials placing bets on online prediction markets.
This memo follows an incident involving an American military personnel who pleaded not guilty in a case where they allegedly used classified information to win $400,000 by betting on the potential overthrow of Venezuelan President Nicolas Maduro.
U.S. authorities warn that increased participation in such betting activities could threaten national security. They are actively working to prevent government employees from profiting through unregulated markets, which include predictions about the timing of deals with Iran and the likelihood of a U.S. invasion of Cuba by 2026.
In recent weeks, accurate and timely bets were placed hours before President Donald Trump announced a cease-fire with Iran, generating winnings for bettors in the tens to hundreds of thousands of dollars. This has prompted calls from lawmakers for stricter regulation of online prediction markets.
