Tony Evers Bars Insider Trading In Wisconsin Prediction Markets

Wisconsin has added new ethics rules for state executive branch employees as prediction markets become available nationwide.

Good to Know

• Gov. Tony Evers signed Executive Order #294 on Thursday.
• The order targets use of nonpublic government information in prediction markets.
• Wisconsin has not reported any insider trading cases tied to state workers.

Gov. Tony Evers signed the order to protect public trust and limit how government employees use information gained through public service. The rule does not ban every prediction market trade by state workers, but it blocks them from using sensitive information for financial gain.

Executive Order Targets Insider Information

The order applies to Wisconsin state executive branch employees. It also covers help given to spouses, family members, or other people who may profit or avoid losses through prediction market activity.

The order states:

“All Wisconsin state executive branch employees are strictly prohibited from disclosing or using any nonpublic information obtained due to their public service to personally profit from, avoid loss from, or assist another person or entity, including spouses and family members, in profiting or avoiding loss from participation in prediction markets. Any violation of this order may result in dismissal, referral to the Wisconsin Ethics Commission, or other appropriate sanctions and may be referred to law enforcement.”

Wisconsin already required public officials to follow transparency and integrity standards. Prediction markets added a newer concern because contracts can involve politics, policy, sports, economics, and other events where government workers may see information before the public.

Evers said:

“Maintaining public trust and confidence in our state government demands and depends upon transparency, accountability, integrity, and upholding the fundamental tenet of public service in decisions that, above all, the work must be for the benefit of the public good and not for the personal gain or benefit of any individual worker.”

Prediction markets already operate in all 50 states. One survey found that 15% of Americans had bought sports related prediction contracts, which suggests broader use across other categories as well.

The Wisconsin order acts ahead of any known problem. State officials have not identified insider trading or suspicious trading by government employees tied to prediction markets.