White House aide Gabriel Perez has left the Federal Government following allegations that he used advance knowledge of President Donald Trump's speeches to place prediction market wagers. Perez allegedly earned more than $100,000 by betting on words and phrases Trump would use during his speeches through Kalshi.
Perez, Trump's longtime teleprompter operator, had previously been placed on unpaid administrative leave after Kalshi flagged suspicious trading activity and referred the matter to the Commodity Futures Trading Commission.
He allegedly wagered on whether Trump would use specific words or phrases during public appearances, including his February State of the Union address and more than a dozen other events over a three-month period.
Perez had worked with Trump since his 2016 presidential campaign and served as deputy assistant to the president and technical advisor, earning $175,000 annually. His position gave him access to presidential remarks before they were publicly delivered.
Kalshi's surveillance team identified the trades and referred them to federal regulators. Federal prosecutors reportedly declined to pursue a criminal case, although regulators are said to have reached a settlement requiring Perez to return his profits and refrain from similar trading.
The case has added to concerns over government employees using sensitive information on prediction markets, particularly as lawmakers consider restrictions on officials wagering through platforms such as Kalshi and Polymarket.
Over the weekend, Netflix ran an "Instadoc" called The Prediction Games, bringing the rise of prediction markets to an even wider audience. You can read Global Gaming Insider's review of that documentary here.
Separately, Kalshi is facing tighter restrictions in Nevada. The operator recently agreed to cease its activities in the state by August 12 following action by the Nevada Gaming Control Board.
Failure to comply would result in penalties of $120,000 per day. Kalshi is expected to implement third-party geofencing technology after the Nevada Supreme Court rejected its attempt to avoid geolocation requirements.
The developments underline increasing regulatory scrutiny of prediction markets as their overlap with traditional wagering continues to attract attention from gaming regulators and government authorities.
Kalshi recently agreed to cease operations in Nevada by August 12 following a separate dispute with the Nevada Gaming Control Board
