White House Issues Warning on Insider Betting
White House staff received a warning last month advising them not to use insider information to place bets on prediction markets.
The email, first reported by the Wall Street Journal, was sent on 24 March, one day after US President Donald Trump announced a five-day pause on his threat to attack Iranian power plants and energy infrastructure.
This communication referred to media reports expressing concerns about government officials potentially using non-public information to place wagers on platforms such as Kalshi or Polymarket.
Official Response
White House spokesman Davis Ingle responded to the BBC, stating:
"Any implication that Administration officials are engaged in such activity without evidence is baseless and irresponsible reporting."
Ingle further emphasized that all federal employees must adhere to government ethics guidelines that prohibit leveraging 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 reached out to Kalshi and Polymarket for comment regarding these concerns.
Background on Prediction Markets and Previous Incidents
Polymarket attracted scrutiny in January after an anonymous gambler earned nearly half a million dollars by betting on the capture of Venezuelan president Nicolás Maduro shortly before the event was officially announced.
The identity of the bettor remains unknown; the account was identified only by a blockchain string of letters and numbers.
This incident raised questions about whether the bettor had access to inside information related to the US military operation.
Prediction markets, which have facilitated over $44 billion (£33 billion) in trades, have grown increasingly popular over the past year.
These markets cover a wide range of topics. While many bets involve sports, users can also wager on events such as whether the US central bank will cut interest rates or the outcomes of local elections.
