A longtime White House teleprompter operator who worked closely with President Donald Trump is under federal scrutiny after reportedly earning more than $100,000 by placing prediction market bets on the contents of Trump’s speeches. The allegations have sparked renewed debate over ethics, insider information, and the growing influence of prediction markets in American politics.
Federal Investigation Centers on White House Staffer
According to multiple reports, Gabriel Perez, a technical assistant who has operated President Trump’s teleprompter since his first presidential campaign in 2016, is being investigated by the Commodity Futures Trading Commission (CFTC).
Investigators believe Perez allegedly used advance knowledge of Trump’s prepared remarks to place successful bets on the prediction market platform Kalshi, where users can wager on whether specific words or phrases will appear in major public speeches. Authorities reportedly estimate that the trades generated profits exceeding $100,000.
While no criminal charges have been announced, reports indicate Perez has been discussing a possible civil settlement with federal regulators.
How the Alleged Betting Worked
The investigation focuses on Kalshi’s so-called “mention markets.” These markets allow participants to predict whether a politician or public figure will mention certain words, topics, or phrases during scheduled speeches.
Because teleprompter operators often receive speech drafts before they become public, investigators are examining whether Perez possessed material nonpublic information that gave him an unfair advantage over other traders.
Officials believe he allegedly placed wagers on more than a dozen Trump speeches, including several high-profile addresses, after reviewing speech drafts before they were delivered publicly.
Why the Investigation Matters
Although prediction markets have expanded rapidly in recent years, they depend on participants competing with publicly available information.
If someone trades using confidential government information, regulators may consider it a form of insider trading or market manipulation—even when the betting occurs on political events instead of traditional financial assets.
The case is viewed as one of the highest-profile tests yet of how existing financial regulations apply to prediction markets tied to government activity.
White House Responds
Following the reports, the White House confirmed that Perez has been placed on unpaid administrative leave while the investigation continues.
Administration officials described the alleged conduct as unacceptable and emphasized that employees are prohibited from using confidential government information for personal financial gain.
According to reports, President Trump was informed of the allegations and supported the decision to remove Perez from his duties pending the outcome of the investigation.
Kalshi Flagged the Activity
Reports indicate the unusual betting activity was first detected by Kalshi’s internal surveillance systems.
Company officials reportedly noticed trading patterns that appeared inconsistent with normal market behavior. After conducting an internal review, Kalshi froze the account involved and referred the matter to federal regulators for further investigation.
The company has also announced additional compliance measures designed to reduce the risk of insider trading in political prediction markets.
What Is Kalshi?
Kalshi is a federally regulated prediction market platform where users trade contracts tied to future events.
Instead of buying stocks, participants buy contracts predicting whether an event will happen, such as:
- Election outcomes
- Inflation figures
- Federal Reserve decisions
- Economic reports
- Political speeches
- Legislative actions
The platform has grown significantly as prediction markets have become increasingly popular among traders, journalists, and political observers.
However, the industry has also attracted increased regulatory attention because of concerns about market manipulation and insider information.
Ethics Questions Surround Government Employees
The allegations have prompted ethics experts to question how government employees should interact with prediction markets.
White House staff members frequently receive sensitive information before it becomes public. Even employees who are not elected officials may have access to speech drafts, policy announcements, executive orders, and scheduling decisions.
Using that information for personal financial benefit could violate ethics rules governing executive branch employees and potentially federal financial regulations.
Experts say the investigation may lead to stricter guidance for government workers regarding participation in prediction markets.
Broader Scrutiny of Prediction Markets
The Perez investigation comes during a period of increased attention on prediction markets across the United States.
Federal regulators have recently examined several cases involving individuals accused of using confidential information to profit from contracts tied to military operations, corporate announcements, and government actions.
As prediction markets continue expanding, regulators are working to determine how traditional insider trading principles apply to contracts based on political events rather than stocks or commodities.
No Criminal Charges Announced
At this stage, reports indicate the investigation remains civil rather than criminal.
Perez has reportedly cooperated with investigators, and discussions regarding a potential settlement with the CFTC are ongoing.
Neither the White House nor federal regulators have publicly released detailed evidence supporting the allegations, and no court has determined that any laws were violated.
The investigation remains active, and additional findings could emerge in the coming weeks.
Potential Impact on Government Ethics
Regardless of the investigation’s final outcome, the controversy has highlighted a new challenge created by prediction markets.
Unlike traditional insider trading involving corporate earnings or mergers, political prediction markets involve government decisions, speeches, and policy announcements.
Ethics specialists believe agencies may soon revisit internal rules governing employees’ participation in these markets, especially for staff members with advance access to presidential communications.
Some observers also expect Congress and regulators to consider whether additional disclosure requirements or trading restrictions are needed for federal employees.
Conclusion
The reported investigation into White House teleprompter operator Gabriel Perez marks one of the first major insider-information controversies involving political prediction markets. Allegations that confidential access to President Trump’s speeches generated more than $100,000 in betting profits have raised serious questions about ethics, government transparency, and financial regulation.
While the CFTC investigation continues and no final legal determination has been made, the case is already influencing discussions about how prediction markets should be regulated and how government employees should handle nonpublic information in an increasingly digital financial landscape. (ABC News)
Related: Read our coverage of Trump’s Primetime Election Speech Sparks White House Debate Over 2020 Election Claims to learn why the president’s latest address reignited controversy over the 2020 election and drew sharp reactions from political leaders.
