An indicted Israeli Air Force reservist said the entire force is involved in gambling on prediction markets. Israeli authorities indicted the airman on Monday after allegedly using classified information to profit.
According to reports, the major received information that 2025 Israeli and US airstrikes on Iran were imminent. He allegedly passed that on to a civilian friend. Then, the civilian used that information to trade on Polymarket, pocketing $128,000 in winnings.
As part of the reservist’s defense, his attorney said the airman didn’t know he was doing anything wrong. His claimed ignorance because “everyone in the force” gambles on prediction market platforms.
“The entire Israel Air Force is involved in gambling,” the officer said.
Putting Forces At Risk
During court proceedings, the suspect’s attorneys sought for the reservist to be released to house arrest. But the Israeli court rejected that petition. Prosecutors alleged that the officer sold information for financial benefits and put Israel Air Force pilots and operations at risk in the process.
“This is not just a gambling story but a serious treatise of wrongful acts committed out of a pursuit of excitement and lust for financial gain, while completely ignoring their consequences and the most basic moral and ethical norms,” the judge said.
Prosecutors said the officer’s arrest was not based on the perceived severity of the crime. It was because he allegedly sold classified information, according to the Jerusalem Post.
The court ruled that the airmen’s claims on gambling in the force weren’t relevant to the case, but the judge recommended an investigation into the issue. Other members of the Israeli Defense Forces have also allegedly used confidential information in recent months for trading on prediction markets, according to reports.
Additional Insider Trading Cases
Over the last few months, lawmakers and gaming regulators have expressed concerns over insider trading on prediction markets. Lawmakers in the US have filed a bill banning federal employees from using prediction markets.
Earlier this year, suspicious wagering on the prospects of Iranian Supreme Leader Ayatollah Ali Khamenei remaining in power came to light. Several bettors combined to wager seven figures on the outcome. They wagered on Kalshi and Polymarket just before Khamenei was killed from airstrikes on his compound in Tehran.
This followed allegations of insider trading on Polymarket regarding the capture and arrest of former Venezuelan leader Nicolás Maduro. In December, a user also apparently won 22 of 23 bets in a single day for more than $1 million. All the wins involved Google search markets, and some on social media alleged the user was an insider with the company.
