A White House teleprompter operator accused of using insider knowledge to place profitable bets on President Donald Trump's speeches no longer works for the federal government, according to a White House official.
White House Aide Departs After Betting Allegations
Gabriel Perez, a longtime White House teleprompter operator for President Donald Trump, is no longer employed by the federal government following allegations that he used privileged knowledge of presidential speeches to place bets on the online prediction market Kalshi. A White House official confirmed Perez's departure but did not specify whether he resigned or was dismissed. Earlier this month, Perez had been placed on unpaid administrative leave after reports surfaced alleging he profited from wagers based on the president's prepared remarks. According to investigators and previous media reports, Perez allegedly earned more than $100,000 by betting on whether Trump would use specific words or phrases during major public addresses, including the State of the Union. Because Perez worked directly with teleprompter scripts before the speeches were delivered, authorities are examining whether he possessed material non-public information that gave him an unfair advantage in prediction markets. The allegations have drawn significant attention because they involve a senior White House employee with direct access to confidential presidential speech preparations. Ethics experts say the case raises broader concerns about the use of insider government information in rapidly expanding prediction markets.
Prediction Market Trades Trigger Investigation
The investigation began after Kalshi's internal surveillance systems detected unusual betting patterns linked to Perez's account. The prediction market platform launched an internal review before referring its findings to the U.S. Commodity Futures Trading Commission (CFTC), the federal regulator responsible for overseeing Kalshi's exchange. Kalshi's rules prohibit users from placing trades based on confidential information obtained through their employment or official duties. Company officials said the platform continuously monitors trading activity for suspicious patterns and reports potential violations to regulators when appropriate. Federal investigators are examining whether Perez's access to presidential speech drafts constituted insider information under applicable market rules. Although prediction markets differ from traditional securities markets, regulators increasingly view misuse of confidential information as a significant enforcement issue. The case has also intensified debate over how prediction markets should be regulated as they continue expanding into political events, elections, and public policy forecasts. Industry supporters argue these markets improve information discovery, while critics contend they create opportunities for unethical conduct when participants possess privileged information.
White House Condemns the Alleged Conduct
The White House responded quickly after the allegations became public. Press Secretary Karoline Leavitt described the reported conduct as 'deeply unfortunate' and 'a disgrace,' emphasizing that government employees are expected to uphold the highest ethical standards. Shortly after the allegations emerged, Perez was placed on unpaid leave pending the outcome of the investigation. Officials have stressed that no evidence suggests President Trump or other senior White House staff were involved in the alleged betting activity. The investigation remains focused on Perez's personal conduct and whether confidential government information was improperly used for financial gain. Perez reportedly worked alongside Trump for nearly a decade, serving as one of the president's trusted teleprompter operators during campaign events, official addresses, and international appearances. His position provided routine access to speech materials before they became public, making the allegations particularly sensitive from an ethics standpoint. The White House has not announced whether additional internal reviews of staff compliance procedures will be conducted, but officials indicated they are cooperating with federal investigators as the inquiry continues.
Case Highlights Growing Scrutiny of Prediction Markets
The controversy comes as prediction markets continue experiencing rapid growth in the United States. Platforms such as Kalshi allow users to buy and sell contracts based on the likelihood of future events, including elections, economic data releases, legislation, and political speeches. As trading volumes increase, regulators and ethics experts have warned that markets tied to government decisions or official announcements may present unique insider trading risks. Individuals with advance access to confidential information—including government employees, contractors, and political advisers—could potentially exploit that knowledge for financial gain if appropriate safeguards are not enforced. Kalshi has stated that its surveillance systems are designed to detect suspicious activity and that the company works closely with regulators to investigate possible violations. Following the Perez investigation, the company has reportedly strengthened compliance procedures, including requiring additional employment disclosures from certain participants. Legal experts note that while prediction markets differ from stock exchanges, the principle that market participants should not profit from confidential information remains central to maintaining fair and trustworthy trading environments.
Investigation Continues Amid Ethics Questions
Although Perez no longer works for the federal government, investigations into the alleged betting activity continue. Federal authorities are expected to determine whether any laws or market regulations were violated and whether further enforcement action is warranted. The case has renewed discussion about ethics standards for executive branch employees, particularly those with access to confidential presidential materials. Government ethics specialists argue that stronger training, disclosure requirements, and oversight may be necessary as financial products linked to political events become increasingly popular. Members of Congress have also expressed interest in reviewing safeguards designed to prevent government employees from using privileged information for personal financial benefit. Lawmakers are expected to examine whether existing ethics rules adequately address prediction markets, which have grown substantially in recent years. Regardless of the investigation's outcome, the incident illustrates the emerging challenges governments face as new financial technologies intersect with public service. Maintaining public confidence requires ensuring that confidential information obtained through official duties is never used to generate personal profit. The White House has indicated that it will continue cooperating with regulators while federal investigators complete their review of the allegations.
