Prohibition on use of prediction markets by personnel of the Department of Defense

(a) Regulations required Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense, in consultation with the Secretaries of the military departments, shall issue regulations prohibiting members of the covered Armed Forces and civilian employees of the Department of Defense from entering into transactions on prediction markets in cases that relate to— (1) the Department of Defense, the Armed Forces, the military departments, the defense agencies, a combatant command, or any other component of the Department; (2) military operations, military plans, military activities, mobilization, deployments, force posture, readiness, casualties, military exercises, contingency operations, or the use of force; (3) intelligence activities, counterintelligence activities, special operations, cybersecurity operations, cyber incidents, or operations in the information environment; (4) terrorism, armed conflict, foreign military operations, foreign internal instability, sanctions, export controls, foreign military sales, security assistance, or defense articles or services; (5) defense acquisition, contract awards, bid protests, milestone decisions, program delays, production rates, weapons deliveries, the defense industrial base, or other matters involving Department procurement or acquisition; (6) authorization, appropriation, apportionment, allotment, obligation, expenditure, rescission, reprogramming, transfer, or withholding of funds for the Department; (7) classified information, controlled unclassified information, procurement-sensitive information, deliberative information, predecisional information, or other nonpublic Government information; or (8) any other category of event, contingency, occurrence, decision, action, outcome, or circumstance that the Secretary determines, by regulation, creates a risk to the integrity of Department operations, the protection of nonpublic Government information, the impartiality of Department personnel, or public confidence in the Department. (b) Contractor regulations (1) In general Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall revise the Defense Federal Acquisition Regulation Supplement to require an appropriate clause in relevant contracts to prohibit contractor personnel from participating in prediction markets in cases described in subsection (a). (2) Contractor reporting The clause required under paragraph (1) shall require the contractor to report to the contracting officer and appropriate security officials any credible information indicating that contractor personnel described in paragraph (1) knowingly violated the prohibition required by such clause. (3) Rule of construction Nothing in this subsection shall be construed to limit any other requirement relating to conflicts of interest, procurement integrity, insider threat, cybersecurity, contractor responsibility, or eligibility for access to classified information. (c) Enforcement The regulations under subsections (a) and (b) shall specify a range of punishments for the use of prediction markets in violation of this section. (d) Covered Armed Forces defined In this section, the term covered Armed Forces means the Army, Navy, Air Force, Marine Corps, and Space Force.