Updated ,first published
Washington: The man who operates Donald Trump’s teleprompter has been placed on leave after revelations he allegedly made more than $US100,000 ($143,000) on prediction markets based on what the US president would say.
Gabriel Perez, a long-time technical assistant to the president, operated Trump’s teleprompter as far back as 2016 when he first ran for office, giving him first-hand insider knowledge of the contents of Trump’s speeches.
Prediction market company Kalshi said it alerted the regulator to suspicious betting activity on its “Mentions” market, where users can bet on whether specific words or phrases are mentioned in a speech, after a months-long investigation.
Kalshi said the trades came to its attention in March as they did not fit regular patterns of buying and selling. It froze Perez’s funds in his account before he was able to take most of the profits off the platform.
The revelations were first reported by America’s ABC News, which said Perez placed bets on more than a dozen Trump speeches in three months – including the State of the Union, a speech at the World Economic Forum and a primetime address in December, according to the ABC story.
The allegations – confirmed by the White House – come amid broader speculation about Trump’s family, subordinates or associates potentially using inside information to enrich themselves, given market fluctuations caused by the Iran war.
White House press secretary Karoline Leavitt told reporters Perez had been placed on unpaid administrative leave.
“I’m aware of the report. The president is too … he believes it is deeply unfortunate and frankly a disgrace,” she said. “The White House has extremely strict ethical guidelines with respect to issues like this.”
Perez was complying with the regulator, Leavitt said, and the president decided to place him on leave. She said that to her knowledge, no other White House staff members were being investigated for similar allegations.
“This played out exactly how it should,” Leavitt said. “Kalshi notified the CFTC of suspicious activity. They investigated that, identified the individual, and he will now no longer be working at the White House.”
Kalshi confirmed the facts of the matter, including that it had “charged” Perez with violating its rules of exchange – specifically sections prohibiting trading by people with material nonpublic information or employees of a source agency. The money remains frozen in Perez’s account.
“Our surveillance team promptly flagged and referred these trades to the CFTC after an exchange investigation,” said Robert DeNault, Kalshi’s head of enforcement.
“We have charged this individual and have been assisting regulators on this matter and provided evidence we collected, as we do in any referral.”
Kalshi and Polymarket are the two main prediction market operators in the US, which allow users to buy and sell contracts tied to future events or outcomes – essentially, betting on whether things will happen or not. Both are heavily tied to sports betting.
Prediction markets are not licensed to operate in Australia, though their websites can be accessed using virtual private networks. Their popularity exploded in the US after they were legalised following a landmark court ruling in 2024.
The revelation about Trump’s longtime teleprompter operator came just hours before the president delivers a primetime address to the nation, in which he is expected to make significant claims about election fraud and interference.
“There will be a teleprompter operator tonight, but it will not be the one unfortunately [mentioned] in that story,” Leavitt said.
She would not provide details of the speech but said the contents “will shock you”. The president would use the speech to make the case for the SAVE Act, which compels voters to show photo ID in all states, among other changes to voting regulations, Leavitt said.
The allegations about Perez come amid widespread concern over the potential for administration insiders to profit from inside knowledge relating to world events driven by Trump and the US, including the war against Iran and other matters.
The day the war began, data analytics firm Bubblemaps identified six “suspected insiders” who made upwards of $US1.2 million ($1.72 million) buying options on a strike that day. Since then, the firm has identified many more suspected cases.
And a US Army soldier, Gannon Ken Van Dyke, pleaded not guilty to charges of using classified information to profit from Polymarket bets about the US military operation to capture former Venezuelan leader Nicolás Maduro in January.
Senate Democrat leader Chuck Schumer said the revelations about Trump’s aide were “emblematic of the rampant corruption occurring within the Trump administration and exactly why they must follow suit and ban prediction market trading for administration officials and staffers”.
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Michael Koziol is the North America correspondent for The Age and Sydney Morning Herald. He is a former Sydney editor, Sun-Herald deputy editor and a federal political reporter in Canberra.Connect via X or email.From our partners
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