New York And Illinois Ban State Workers From Prediction Market Insider Trading

New York and Illinois have both issued executive orders to block insider trading by state workers on prediction market platforms. The orders target public employees who use nonpublic information, or pass it to others, to trade event contracts.

Good to Know

• Illinois Governor JB Pritzker signed his order Tuesday and put it into effect at once.
• New York Governor Kathy Hochul followed on Wednesday with a similar ban.
• California already took a related step in March under Governor Gavin Newsom.

States Add Pressure On Prediction Markets

Illinois went first this week. Governor JB Pritzker signed an executive order that bars any state employee, officer, appointee, or board member of a state agency from using nonpublic information gained through public work to trade on prediction markets or event based contracts. The ban also covers helping anyone else trade with that information, whether or not anyone makes money.

Pritzker said:

“Prediction markets have rapidly grown into a space where people can bet on real-world events without any oversight, including events people can influence.

“This opens the door to insider trading and abuse of confidential information. While the Trump Administration continues to be riddled with stories of appointees looking to make a profit, Illinois is stepping up to ensure those who are serving the public not their own personal financial gain.”

New York then followed with its own order on Wednesday. Governor Kathy Hochul barred state employees from insider trading on prediction markets and framed the issue as a basic ethics problem tied to public trust.

Hochul said:

“Getting rich by betting on inside information is corruption, plain and simple. Our actions will ensure that public servants work for the people they represent, not their own personal enrichment.

“While Donald Trump and DC Republicans turn a blind eye to the ethical Wild West they’ve created, New York is stepping up to lead by example and stamp out insider trading.”

California had already entered the picture in March. Governor Gavin Newsom signed an order that blocks state appointees from using nonpublic information to buy prediction market contracts or help others profit from event contracts.