White House Staff Warned Against Betting on Prediction Markets Using Inside Information

White House aides received an email last month warning them against placing bets on prediction markets using nonpublic government information, multiple administration officials confirmed to CBS News.

The directive signals growing concern within the executive branch over the potential for insider trading-style activity as prediction markets have surged in popularity following the 2024 election cycle.

The email cautioned staff that using privileged or confidential information — the kind routinely accessed by White House employees — to gain an advantage on platforms such as Polymarket or Kalshi could expose them to serious legal and ethical consequences.

Administration officials did not specify whether any particular incident triggered the warning, but the guidance reflects a broader effort to establish clearer boundaries around the use of nonpublic information in an era when political prediction markets operate with real financial stakes.

Prediction markets, which allow users to wager on the outcomes of political, economic, and world events, have grown dramatically in reach and trading volume. Their mainstream rise has prompted regulators and government ethics watchdogs to scrutinize how insiders might exploit their positions for financial gain.

White House staff are already subject to strict ethics rules governing conflicts of interest and the misuse of official information, but the explicit mention of prediction markets suggests that existing guidelines were seen as insufficient or unclear on the issue.

The warning underscores the tension between the rapid growth of financial technology platforms and the slower pace at which government ethics frameworks adapt to address them. It remains unclear whether any formal policy changes are planned beyond the initial email guidance.