Federal regulators are examining allegations that a longtime White House teleprompter operator used advance knowledge of President Donald Trump’s prepared speeches to profit from prediction market wagers. Investigators believe Gabriel Perez earned more than $100,000 by placing trades on Kalshi’s speech-related markets over several months.
The inquiry has intensified concerns about insider information on regulated prediction platforms. Consequently, regulators continue reviewing whether government employees can exploit confidential information for financial gain before public events unfold.
Investigation Centers on Speech-Based Wagers
Authorities found that Perez allegedly placed bets on more than a dozen Trump speeches, including the State of the Union, the World Economic Forum address, and a Medal of Honor ceremony. Besides placing wagers before speeches, investigators believe he adjusted positions during live events when Trump skipped prepared remarks.
The Commodity Futures Trading Commission interviewed Perez, while federal prosecutors reportedly declined to pursue criminal charges. However, regulators continue discussing a settlement that could require Perez to surrender his profits and avoid similar trading.
Prediction Markets Tighten Compliance Measures
Kalshi detected the unusual activity through its internal surveillance systems before notifying the CFTC. Additionally, the platform strengthened compliance by requiring users to disclose their employers. The White House also reminded staff about ethics rules governing nonpublic information after the investigation surfaced.
Moreover, recent insider trading cases involving Polymarket prompted lawmakers to propose stricter limits on government-related prediction market activity. These developments highlight growing regulatory attention as prediction markets expand across the United States.
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