Israeli soldier accused of using classified information to place bets on Polymarket

An Israeli citizen and a military reservist have been indicted on suspicion of leveraging classified information to place bets on military operations via the Polymarket website, authorities confirmed on Thursday.

A joint statement released by the Defence Ministry, the Shin Bet internal security service, and the police revealed that several individuals were recently apprehended in connection with gambling activities on the platform.

"This was allegedly based on classified information to which the reservists were exposed through their military duties," the statement detailed.

Following the discovery of sufficient evidence against the civilian and the reservist, the State Prosecutor's Office opted to indict them on charges including serious security offences, bribery, and obstruction of justice.

Lawyers representing those charged were not immediately available for comment.

"The security establishment emphasises that engaging in such gambling activities based on confidential and classified information poses a real security risk to IDF (Israeli military) operations and to state security," it said.

Israeli media said the case was likely linked to an investigation where an anonymous user bet that Israel would strike Iran on the Friday that it did so in June 2025.

The military said that "according to the investigation findings, no operational damage was caused in the current incident". But it said there was a "severe ethical failure and a clear crossing of a red line, which are not consistent with the values of the IDF and what is expected of its service members."

Criminal and disciplinary proceedings will be taken against any party found to be involved in such actions, it added.

No further details of the investigation were available and the identities of those involved remain confidential under a publication ban.

Prediction markets are comprised of typically yes-or-no questions called event contracts, with the prices connected to what traders are willing to pay, which theoretically indicates the perceived probability of an event occurring.

Their use has skyrocketed in recent years, but despite some eye-catching windfalls, traders still lose money everyday. In the US, the trades are categorised differently than traditional forms of gambling, raising questions about transparency and risk.