Two Israelis charged with using classified military information to place bets

Two Israelis have been charged with using classified military information to place bets on how future events will unfold, Israeli authorities said Thursday, accusing the individuals of "serious security offences".

A joint statement by the Israeli Ministry of Defence, domestic security service Shin Bet, and police said that a civilian and a reservist are suspected of placing bets on the US-based prediction market Polymarket on future military operations based on information that the reservist had access to.

"This was allegedly based on classified information to which the reservists were exposed through their military duties," the statement said. Lawyers for those charged were not immediately able to be reached.

The statement said that after it found sufficient evidence against a civilian and a reservist, the State Prosecutor's Office decided to indict them for serious security offences, as well as charges of bribery and obstruction of justice.

"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.

Israel's Attorney General's Office decided to prosecute the two individuals following a joint investigation by police, military intelligence, and other security agencies that led to several arrests. The two face charges including bribery and obstruction of justice.

Authorities offered no details on the identity of the two individuals or the reservist's rank or position in the Israeli military, but warned that such actions posed a "real security risk" for the military and the Israeli state.

Israel's public broadcaster Kan had reported earlier that the bets were placed in June ahead of Israel's war on Iran and that the winnings were roughly $150,000.

Israel's military and 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 statement said.

The accused will remain in custody until the end of legal proceedings against them, the Prosecutor's Office 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.

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 every day. In the US, the trades are categorised differently from traditional forms of gambling, raising questions about transparency and risk.