California Joins 6 States Banning Insider Betting on Prediction Markets

Gaming Edge’s TL;DR

• California becomes the seventh state to ban state employees from using insider information to wager on prediction markets.
• So far, Arizona’s order is the most restrictive.

California is among at least seven states whose governors have issued executive orders barring state employees from using nonpublic information to place bets on prediction markets.

The governors of Arizona, California, Illinois, Maryland, New York, North Carolina, and Wisconsin have all signed orders aimed at preventing public employees from using information gained through their jobs to enrich themselves through prediction market wagers.

The move comes amid ongoing ethics and insider-trading concerns tied to prediction market operators. It does not name specific operators, and it does not detail penalties or enforcement mechanisms in each state.

Enforcement of orders uncertain

Arizona’s order goes further than the others. Gov. Katie Hobbs signed a July 9 order that designates all nonpublic information as restricted, according to the article.

What remains unclear is how each state defines restricted information in practice and how the orders will be enforced.

It’s also uncertain which prediction market operators could be most affected.

Based on reporting by Emma Kinery for State Affairs California.