New York, Illinois Prohibit State Employees From Insider Trading on Prediction Markets

(AsiaGameHub) –   Executive orders have been issued in New York and Illinois to prohibit state employees from engaging in insider trading on prediction market platforms. These directives focus on public workers who utilize or share confidential data to trade event-based contracts.

Key Details

• Illinois Governor JB Pritzker enacted his order on Tuesday with immediate effect.
• New York Governor Kathy Hochul implemented a comparable restriction on Wednesday.
• California Governor Gavin Newsom established a related policy earlier this March.

States Increase Oversight of Prediction Markets

Illinois led the way this week. Governor JB Pritzker signed a directive prohibiting any state worker, official, or board member from leveraging nonpublic data obtained through their roles to participate in prediction markets or event-based contracts. This prohibition extends to assisting others in such trades, regardless of whether a profit is realized.

Pritzker stated:

“Prediction markets have expanded into an unregulated arena where individuals can wager on real-world outcomes, including those they might influence.

“This creates opportunities for insider trading and the misuse of private information. While the Trump Administration is plagued by reports of appointees seeking financial gain, Illinois is acting to ensure public servants prioritize the public interest over personal profit.”

New York’s order followed on Wednesday. Governor Kathy Hochul prohibited state staff from insider trading on these platforms, describing the move as a fundamental ethical necessity to maintain public confidence.

Hochul stated:

“Using confidential information for financial gain is straightforward corruption. Our measures will guarantee that public officials serve their constituents rather than their own bank accounts.

“While Donald Trump and Republicans in Washington ignore the ethical chaos they have fostered, New York is taking the lead to eliminate insider trading.”

California previously addressed the issue in March. Governor Gavin Newsom signed a mandate preventing state appointees from using nonpublic details to purchase prediction market contracts or aiding others in profiting from such agreements.