A White House teleprompter operator accused of using inside knowledge of President Donald Trump’s speeches to place winning bets on a prediction market has left his federal position, according to officials who declined to clarify whether he resigned or was fired.
Gabriel Perez, who allegedly used the online prediction platform Kalshi to win more than $100,000 by betting on specific words and phrases Trump would use in major addresses, “no longer works in the federal government,” a White House official confirmed Tuesday. The official, speaking anonymously because they were not authorized to discuss the personnel matter publicly, would not provide additional details about the circumstances of Perez’s departure.
The development follows reports earlier this month that placed Perez on unpaid leave after ABC News revealed the alleged betting activity. The accusations centered on bets placed through Kalshi’s “Mentions” market, where users wager on what specific language might appear in public speeches.
White House press secretary Karoline Leavitt previously described the reported conduct as “deeply unfortunate and, frankly, a disgrace” when the story first emerged.
How the alleged scheme worked
The accusations against Perez involve bets reportedly placed on what Trump would say during significant speeches, including the State of the Union address earlier this year. As a teleprompter operator, Perez would have had advance access to prepared remarks, potentially giving him information unavailable to the general public.
Kalshi operates prediction markets where users can bet on real-world events, including political speeches. The platform’s “Mentions” market allows participants to wager on whether specific phrases or words will appear in public addresses. This type of market has grown in popularity as prediction platforms have expanded beyond traditional election betting.
The suspicious trading activity was flagged by Kalshi’s own surveillance systems. Robert Denault, the platform’s lawyer and head of enforcement, stated on X that “the Kalshi surveillance team promptly flagged, investigated and referred these trades” to the U.S. Commodity Futures Trading Commission, which holds regulatory authority over prediction markets. While Denault’s statement did not name Perez specifically, it confirmed the platform had identified and reported the activity.
Platform policies and regulatory oversight
Kalshi has recently updated its requirements to combat potential insider trading on its markets. The platform now requires users to disclose their place of employment, a measure aimed at identifying conflicts of interest. The company’s policies explicitly prohibit users from placing bets based on information they obtain through their jobs.
The case raises questions about enforcement mechanisms for prediction markets, which operate under oversight from the Commodity Futures Trading Commission. Unlike traditional sports betting or casino gambling, prediction markets allow users to wager on events ranging from political outcomes to economic indicators, creating unique challenges for detecting insider information.
The regulatory framework for these platforms remains relatively new. Kalshi received CFTC approval to operate in 2020, making it one of the first legal prediction markets accessible to U.S. users. The platform has faced ongoing scrutiny over what types of contracts should be permitted and how to prevent manipulation or misuse.
Broader implications for prediction markets
The alleged conduct highlights vulnerabilities in prediction markets that rely on real-world events where some participants may have privileged access. Speech markets, in particular, depend on the assumption that all bettors are working from publicly available information about a speaker’s likely topics and rhetoric.
When individuals with direct access to prepared remarks participate, the fairness of the entire market comes into question. Other users betting on Trump’s speeches would have been at a significant disadvantage if competing against someone who had seen the actual text in advance.
The incident also illustrates the detection capabilities that platforms have developed. Kalshi’s ability to identify and flag the suspicious activity suggests prediction markets are building surveillance infrastructure similar to what exists in traditional financial markets, where unusual trading patterns can trigger investigations.
The referral to the CFTC means federal regulators will determine whether any violations of commodities trading law occurred. The commission has authority to investigate potential manipulation or fraud in prediction markets under its jurisdiction, though it has not publicly commented on this specific case.
Perez’s departure from federal employment removes him from the position that allegedly gave him access to advance speech information, though the case may continue to unfold as regulators review the trading activity. The White House has not indicated whether additional personnel or security measures are being implemented to prevent similar situations.
Based on reporting by The Oregonian.
This article reports on allegations and legal proceedings as described by the cited source. Any charges or accusations mentioned are unproven, and all individuals are presumed innocent unless and until found guilty in a court of law.