In brief
In a recent email, White House staff were reminded not to engage in betting on prediction markets using insider information. This warning comes after concerns arose regarding potential ethical violations following President Trump's announcement related to military actions against Iran. Officials emphasized adherence to government ethics guidelines, stating that any allegations of insider betting are unfounded.
White House Staff Advised Against Betting on Predictions
White House staff were warned last month not to use insider information to place bets on predictions markets.
The email was sent to staff on 24 March, a day after US President Donald Trump announced a five-day pause on his threat to attack Iranian power plants and energy infrastructure.
It referred to press reports that raised concerns over government officials using non-public information to place bets on platforms like Kalshi or Polymarket.
White House spokesman Davis Ingle told the BBC that any implication that Administration officials are engaged in such activity without evidence is baseless and irresponsible reporting.
The Wall Street Journal first reported the email on Thursday.
Ingle also said that all federal employees are subject to government ethics guidelines prohibiting the use of insider information for financial gain.
The only special interest that will ever guide President Trump is the best interest of the American people, he added.
The BBC has contacted Kalshi and Polymarket for comment.
Polymarket came under scrutiny in January after a gambler made nearly half a million dollars on the capture of Venezuelan president Nicolás Maduro just before it was officially announced.
It was unclear who placed the bet, and the anonymous account had a blockchain identifier of letters and numbers.
The incident raised concerns about whether they had benefited from inside information of a US military operation.
Prediction markets, which host more than $44bn (£33bn) in trades, have become increasingly popular in the past year. The predictions can relate to various topics, including sports or political events.
This week, US Congressman Ritchie Torres called for an investigation into suspicious trades related to Trump’s ceasefire announcement in Iran.
Legislation has been introduced to ban prediction market betting on military action completely, highlighting concerns about manipulation and ethical lapses in these markets.
Senator Andy Kim pointed out that the current situation leaves the select few winning big, while the average American suffers.
