White House suspends teleprompter operator over Kalshi bets
A White House teleprompter operator has been suspended for allegedly using inside knowledge to profit on prediction markets, highlighting growing regulatory scrutiny of political betting platforms.
Gabriel Perez, who has operated US President Donald Trump’s teleprompter since 2016, was placed on unpaid administrative leave. White House Press Secretary Karoline Leavitt said Trump ordered the suspension and confirmed Perez "will no longer be working at the White House." US media reported Perez allegedly used his advance access to the president's remarks to win more than $100,000 (€85,900) on the online prediction market Kalshi.
The alleged scheme relied on placing trades on what Trump would say during major public addresses before the words were delivered. Kalshi’s internal compliance systems identified the suspicious activity. Robert Denault, Kalshi’s lawyer and head of enforcement, said the platform's "Kalshi surveillance team promptly flagged, investigated and referred these trades" to the US Commodity Futures Trading Commission (CFTC), which holds regulatory authority over such markets.
Denault noted that "We have been assisting regulators on this matter and provided all evidence that we collected, as we do with any referral." According to ABC News, Perez is currently engaged in settlement talks with the CFTC to resolve the allegations. The swift detection and referral demonstrate that prediction market operators are actively building surveillance systems to police their own platforms.
For European investors and financial institutions, this case highlights the emerging regulatory risks surrounding prediction markets. Once considered niche gambling outlets, platforms like Kalshi now treat political and macroeconomic events as tradable derivatives. European funds increasingly monitor these markets for sentiment data, making their structural integrity a direct concern for cross-border capital.
The core vulnerability of prediction markets is their dependence on the timely, equal dissemination of public information. When insiders trade on unreleased political statements, it distorts pricing and erodes trust. The CFTC’s decision to pursue enforcement action against a White House staffer signals that US authorities are treating prediction market manipulation as a serious financial violation.
This regulatory posture will likely influence how European regulators approach similar platforms operating within the EU. As Leavitt stated, "The White House has extremely strict ethical guidelines with respect to issues like this." The broader financial sector, however, must now rely on regulatory frameworks and exchange-level surveillance to prevent insider trading from contaminating the growing political betting ecosystem.
