Legal

Draft defense bill would bar US troops from prediction market bets

Updated 21h ago

A draft U.S. defense policy bill would bar members of the military and Pentagon civilian employees from using prediction markets to bet on global events, according to a June 2, 2026 CNN report. The provision is included in the annual National Defense Authorization Act, which sets Pentagon policy priorities. The restriction targets event-contract platforms that allow wagering on geopolitical outcomes and follows a high-profile soldier insider betting scandal. The bill remains in draft form and must clear both chambers of Congress before becoming law. Specific proposed penalties and a timeline were not provided in available reports.

Why this matters?

The NDAA vehicle gives the provision a near-certain floor vote, unlike standalone prediction-market legislation that typically dies in committee. Any ban that passes would immediately remove a measurable share of event-contract volume from platforms like Kalshi and Polymarket, neither of which currently geofence military bases separately from state-level restrictions.

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