Israel Charges Two Over Using Military Intel for Gambling

Israeli authorities say two individuals exploited operational knowledge to trade on a prediction market, converting confidential defense information into financial gain.

A joint statement by the Ministry of Defense, Shin Bet and police said a civilian and an Israeli reservist placed wagers on the U.S.-based prediction platform Polymarket using nonpublic military information. The Attorney General’s Office approved prosecution after a multi-agency investigation involving police and military intelligence.

Authorities described the alleged activity as “serious security offenses” and warned it created a “real security risk” to both the military and the state. The accused face charges including bribery and obstruction of justice and will remain in custody until proceedings conclude.

The statement did not disclose the reservist’s rank, role, or specific unit, nor the exact operations referenced in the bets.

Timing Around Regional Conflict

Israel’s public broadcaster Kan said the wagers occurred in June, ahead of Israel’s war with Iran. According to Kan, the winnings totaled roughly $150,000. The agencies did not independently confirm the amount but did not dispute the broader timeline.

Officials emphasized the institutional response: security services “view the acts attributed to the defendants very seriously and will act resolutely to thwart and bring to justice any person involved in the activity of using classified information illegally.”

The investigation included several arrests beyond the two charged individuals, though only two indictments were announced Thursday.

Prediction Markets As Intelligence Signals

Prediction markets operate through binary “event contracts,” typically priced according to traders’ willingness to pay. In theory, those prices reflect perceived probability. The rapid growth of such platforms has drawn attention from regulators and security officials, especially where informed participants possess privileged knowledge.

In the United States, trading on these platforms is categorized differently from traditional gambling, complicating oversight frameworks. Authorities increasingly see the markets not only as financial instruments but as potential intelligence indicators - or in this case, exploitation channels.

The Israeli case illustrates how access to operational timelines can translate directly into tradable probabilities. Even a single insider with advance awareness of military activity can skew market expectations and generate profit.

Legal And Institutional Response

Prosecutors framed the affair as both corruption and national security exposure. The charges combine criminal bribery statutes with security-related violations, reflecting concern that monetizing operational plans could indirectly reveal military intentions.

The coordinated investigation by Shin Bet, police, and military intelligence underscores the classification level involved. While no operational details were released publicly, authorities stressed deterrence and institutional integrity as central to the prosecution.