Two Israelis Charged with Betting on Classified Military Information

Illustration of the Israeli flag. (Wikimedia Commons/Zachi Evenor)

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

A joint statement from the Israeli Ministry of Defense, Shin Bet and Israeli police said a civilian and a reservist allegedly placed bets on the US-based Polymarket prediction market on future military operations based on information accessed by the reservist.

The Israeli Attorney General's Office decided to prosecute the two individuals after a joint investigation by the police, military intelligence, and other security agencies that resulted in several arrests. Both face charges including bribery and obstruction of justice, Al Arabiya reported from The Associated Press (13/2).

Authorities did not provide details on the identities of the two individuals or the rank or position of the reserve member in the Israeli military, but warned that the action posed a "real security risk" for the military and the State of Israel.

Israel's public broadcaster KAN previously reported that the bet was made in June ahead of Israel's war with Iran last year, with the winner taking home around $150,000.

"The Israeli military and security services take the actions attributed to the defendants very seriously and will act decisively to thwart and bring to justice anyone involved in the activity of illegally using classified information," the statement said.

The defendants will remain in custody until the end of the legal process against them, the Prosecutor's Office said.

The prediction market consists of yes or no questions called event contracts, with prices associated with what traders are willing to pay, which theoretically indicate the probability of an event occurring.

Its use has skyrocketed in recent years, but despite some glaring advantages, traders still lose money every day.

In the US, these trades are categorized differently from traditional forms of gambling, raising questions about transparency and risk.