White House Aide Fined $172K for Trump Speech Bets

White House Teleprompter Operator Busted for Kalshi Bets

A former White House teleprompter operator, Gabriel Perez, has been fined more than $172,000 by the U.S. Commodity Futures Trading Commission (CFTC) for using advance access to President Donald Trump's speeches to make illegal bets on the prediction market Kalshi. Perez earned $107,539 in profits by wagering on words and phrases Trump would utter in addresses between December 2025 and February 2026, according to a CFTC settlement announced Friday.

What Is Kalshi and How Did Perez Cheat?

Kalshi is a regulated U.S. prediction market where users trade event contracts on real-world outcomes, including whether a president will say specific words in a speech. These "mention market" contracts pay out based on exact phrases. Perez's job was to load Trump's speeches into the teleprompter, giving him access to drafts before they were delivered. The CFTC said he misappropriated that material, nonpublic information to place profitable bets.

The case highlights growing concerns about prediction market insider trading and the difficulty regulators face in detecting such abuse when cryptocurrency is used for deposits.

How Much Did Perez Pay and What Was the Penalty?

Under the settlement, Perez must disgorge $107,539.02 in profits and pay a $65,000 civil penalty, for a total of $172,539.02. He also accepted a three-year trading ban and a cease-and-desist order for violating the Commodity Exchange Act. The CFTC credited his "exemplary cooperation" and noted that KalshiEX, the exchange's operator, assisted the investigation after flagging suspicious activity.

Trump's Response and White House Fallout

Perez was placed on unpaid leave after the breach came to light and no longer works for the federal government. Former White House Press Secretary Karoline Leavitt confirmed the incident, saying Trump described it as "deeply unfortunate and, frankly, a disgrace." Perez had managed Trump's teleprompter scripts since the 2016 campaign and earned a $175,000 annual salary.

Why Prediction Markets Face Growing Scrutiny

This case is part of a broader crackdown on insider trading in prediction markets. The CFTC has also charged a U.S. soldier for betting on events related to Venezuela and has fined political candidates who wagered on their own elections. Because platforms like Kalshi and Polymarket allow cryptocurrency deposits, regulators say detecting such abuse is difficult. The Dutch gambling authority, Kansspelautoriteit, previously banned Kalshi from operating as a betting site in the Netherlands.

Analysts point to CFTC enforcement actions on prediction markets as a sign that the agency is stepping up oversight of event contracts tied to politics.

Impact and Implications

The penalty underscores the legal risks of using confidential government information for personal trading. Legal experts say the relatively light fine—reduced from a potential maximum because of cooperation—could still deter other federal employees. Meanwhile, Kalshi and its rival Polymarket continue to expand political event contracts, raising questions about whether current rules are sufficient. The debate over US election betting markets has intensified as more high-profile misuse cases emerge.

FAQ: White House Aide Kalshi Fine

What did Gabriel Perez do?

Perez, a White House teleprompter operator, used advance access to Trump's speech drafts to bet on Kalshi about which words the president would say, earning over $107,000 in illegal profits.

How much was the White House aide fined?

He was ordered to pay a $65,000 civil penalty and disgorge $107,539.02 in profits, totaling $172,539.02, plus a three-year trading ban.

What is Kalshi?

Kalshi is a CFTC-regulated prediction market where users trade event contracts on political and news outcomes, including whether a president uses specific words in speeches.

Why was the penalty reduced?

The CFTC said Perez's "exemplary cooperation" and KalshiEX's assistance in the investigation justified a lower fine.

Is betting on Trump speeches legal?

Betting on political events is legal on regulated platforms like Kalshi, but using nonpublic government information to do so violates the Commodity Exchange Act.