New York and Illinois ban staff prediction market bets

New York and Illinois have issued executive orders banning state employees from participating in prediction markets, citing risks of insider trading and misuse of confidential information.

New York Governor Kathy Hochul said the measure is designed to prevent public officials from profiting on nonpublic data, warning that such behaviour undermines trust in government.

“Getting rich by betting on inside information is corruption, plain and simple,”

Hochul said, adding that the move ensures public servants act in the public interest rather than personal gain.

Illinois Governor JB Pritzker introduced a similar ban, reinforcing existing ethics rules as prediction markets expand rapidly and attract regulatory scrutiny.

The orders come as trading volumes in prediction markets hit record levels, with platforms offering contracts tied to politics, finance and global events, raising concerns over potential market manipulation.

Authorities also pointed to cases of suspicious trades linked to geopolitical events, highlighting the risk that individuals with privileged knowledge could influence or profit from outcomes.

The policy shift adds to a broader crackdown across US states and federal discussions on regulating prediction markets, which remain a legal and ethical grey area despite oversight by the Commodity Futures Trading Commission.