The Governor of New York State signs an executive order restricting public officials from participating in insider trading of prediction markets

Gold Finance News reports that on April 23, New York Governor Kathy Hochul signed an executive order on Wednesday prohibiting state government employees from using non-public information to trade in prediction markets or to assist others in profiting from such activities. The move is intended to address growing concerns about increasingly severe “insider betting” in prediction markets.
Under the terms of the executive order, all government officials appointed by the governor or members of public institutions under her jurisdiction are prohibited from using any non-public information obtained in the course of performing their duties to seek benefits or avoid losses in prediction markets or similar services, and they are also not allowed to assist others with related operations. In the document, the governor noted that the current “rapid expansion of prediction markets” has drawn regulatory attention.
The day before, Illinois Governor JB Pritzker also issued a similar executive order banning state government personnel from using non-public information to participate in prediction market betting.
Meanwhile, the prediction market platform Kalshi disclosed that it has launched investigations into three insider trading cases involving candidates and has imposed fines and trading suspensions on the individuals involved. One of the penalized individuals is Mark Moran, a Democratic primary candidate for the Virginia State Senate, who was fined for betting on his own campaign and said, “I hope to be caught.”