New York and Illinois Bar State Employees From Prediction Markets

Prediction markets allow participants to wager money on the outcomes of political, policy or other events. State employees who trade using nonpublic information could create conflicts of interest and engage in insider trading. New York and Illinois have therefore subjected state government employees to stricter public-ethics rules to preserve impartial decision-making and public trust.

New York and Illinois have each signed executive orders banning state government employees from participating in prediction markets. No specific transaction amounts were involved, and the summaries did not provide the signing dates. New York Governor Kathy Hochul also criticized the Trump administration for lacking effective ethical standards and failing to curb the risk of insider trading in such markets.