Gabriel Perez, President Trump's teleprompter operator since 2016, allegedly won more than $100,000 on Kalshi prediction markets by betting on speech content he knew in advance, according to an ABC News report. The alleged betting activity occurred over a three-month stretch across more than a dozen Trump speeches, including February's State of the Union address, a December primetime address, January remarks at the World Economic Forum in Davos, and a March Medal of Honor ceremony. Perez, who typically has final review of the president's prepared remarks and receives last-minute edits from Trump himself, was placed on unpaid administrative leave by the White House. The CFTC is investigating the matter and has discussed settlement terms requiring Perez to return his profits, though federal prosecutors in Manhattan declined to open a criminal investigation and no charges have been filed. Kalshi's surveillance team identified and flagged the suspicious trading activity before referring it to regulators.
The alleged bets ran through Kalshi's "Mentions" market, where users wager on whether specific words, phrases or topics appear in public speeches. Sources familiar with the matter told ABC News that CFTC investigators tied Perez to bets on more than a dozen Trump speeches. Investigators found instances where Perez backed out of bets mid-speech when Trump skipped over passages containing words he had wagered on, according to the report.
Kalshi Surveillance Team Flags and Refers Trades to CFTC
Kalshi, the CFTC-regulated event-contract exchange, identified the activity itself. "Kalshi surveillance team promptly flagged, investigated and referred these trades" to the regulator, head of enforcement Robert DeNault stated. "We have been assisting regulators on this matter and provided all evidence that we collected, as we do with any referral," DeNault said. The CFTC has defended the exchange's federal footing before, joining the Justice Department in April court action against state gambling orders aimed at regulated prediction platforms.
White House Places Perez on Unpaid Administrative Leave
Press secretary Karoline Leavitt confirmed Perez was placed on unpaid administrative leave, and said Trump made the decision personally after calling the matter a "disgrace." Leavitt described the situation as unfortunate, and the White House noted it holds staff to strict ethics guidelines. Perez has not commented publicly on the matter.
CFTC Discusses Settlement Terms With Perez
CFTC officials have discussed settlement terms that would require Perez to hand back his profits and refrain from similar trades, the report said. Perez acknowledged some of the trades in an interview with regulators, according to ABC News. Federal prosecutors in Manhattan declined to open a criminal investigation, and no charges of any kind have been filed.
Congress has been weighing insider-trading rules for prediction markets as event-contract volumes surge. Kalshi and Polymarket cleared a combined $18.3 billion in monthly trading as of February, and both platforms have rolled out self-regulation measures in response.
FAQ
What did Gabriel Perez allegedly do on Kalshi prediction markets?
Gabriel Perez, Trump's teleprompter operator since 2016, allegedly used advance knowledge of the president's speeches to win more than $100,000 on Kalshi's "Mentions" market, where users wager on whether specific words or phrases appear in public speeches. CFTC investigators tied Perez to bets on more than a dozen Trump speeches over a three-month stretch, and investigators found instances where Perez backed out of bets mid-speech when Trump skipped passages containing words he had wagered on.
How did Kalshi and regulators respond to the alleged insider betting?
Kalshi's surveillance team promptly flagged, investigated and referred the trades to the CFTC, according to head of enforcement Robert DeNault. CFTC officials have discussed settlement terms that would require Perez to return his profits and refrain from similar trades. Federal prosecutors in Manhattan declined to open a criminal investigation, and no charges have been filed. The White House placed Perez on unpaid administrative leave after Trump personally called the matter a "disgrace."
