New York Issues Executive Order Blocking State Employees From Insider Trading on Prediction Markets

Governor Kathy Hochul has signed Executive Order No. 60, prohibiting New York State employees from using insider information to profit on prediction markets.

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The order, filed yesterday, shows the state’s commitment to public integrity and aims to prevent officials from exploiting nonpublic government data for personal gain. Hochul wrote that “the maintenance of public trust is founded on the principle that public servants are charged with using their positions to benefit the public good,” adding that no government decision should be driven by personal financial interests.

The directive comes amid growing concern over unregulated prediction platforms that allow users to wager on political, military, and social events. 

Hochul noted that “the recent proliferation of prediction markets… has heightened the potential for misconduct whereby those with privileged information can seek to personally profit by trading on insider information.”

The order applies to all state officers and employees serving at the Governor’s pleasure, as well as members of public authorities appointed by her office.

Order spells out penalties

Under the new rule, no state employee may use nonpublic information obtained through official duties to “seek profit or avoid loss from participation in a prediction market or similar service.” 

Violations can lead to dismissal, sanctions, or referral to law enforcement and ethics authorities. Each public authority must now adopt internal policies enforcing these restrictions.

The order defines a “prediction market” as any unlicensed platform that lets participants buy and sell contracts based on future events, such as elections, sporting outcomes, or government actions.

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“Getting rich by betting on inside information is corruption, plain and simple,” Governor Hochul said. “Our actions will ensure that public servants work for the people they represent, not their own personal enrichment. While Donald Trump and DC Republicans turn a blind eye to the ethical Wild West they’ve created, New York is stepping up to lead by example and stamp out insider trading.”

The executive order builds on the Public Officers Law § 74, which bars state employees from using confidential information for personal benefit or engaging in activities that create conflicts of interest. Hochul’s directive extends those principles to newer technologies that blur the line between speculation and gambling.

Prediction market clampdown continues

Hochul’s order arrives as prediction markets face mounting scrutiny over how insider information is being used to generate massive profits.

Reports have highlighted trades tied directly to government actions, including an anonymous bet in January that earned more than $400,000 on the prediction that Venezuelan President Nicolás Maduro would soon be removed from office.

Investigations have also uncovered more than $1 billion in “perfectly‑timed” wagers connected to the war in Iran, with contracts placed on the location and timing of military strikes and the status of the Strait of Hormuz.

New York has already taken steps to fight these platforms. Last October, the Gaming Commission issued a cease‑and‑desist letter to Kalshi, accusing the company of illegally running an unlicensed mobile sports wagering service in the state. The state even sued Coinbase and Gemini for alleged illegal online gambling this week. 

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The new executive order builds on that enforcement and takes effect immediately.