New York Governor Kathy Hochul signed Executive Order 60 on April 22, barring covered state officials and employees from using nonpublic information gained through their jobs to profit or avoid losses in prediction markets.
Summary
- New York and Illinois barred employees from using insider information in prediction market trading activities.
- Both governors said the orders aim to stop corruption as prediction market volumes keep rising.
- State pressure on Kalshi grows as prediction markets face legal and ethical scrutiny nationwide.
The order also bars them from helping other people use such information in the same way. Illinois Governor JB Pritzker signed Executive Order 2026-04 a day earlier.
Moreover, it says no state employee may use nonpublic information from official duties while taking part in prediction markets or event contracts, and they also cannot use that information to help another person trade in those markets. The order took effect immediately after filing.
Hochul and Pritzker frame move as an ethics issue
Hochul said the state was acting to stop public servants from using inside knowledge for personal gain. In the New York announcement, she said, “Getting rich by betting on inside information is corruption, plain and simple,” and also criticized what she called an “ethical Wild West” around prediction markets. New York’s order says violations may lead to dismissal or referral to law enforcement or ethics authorities.
Pritzker used similar language in Illinois. His office said prediction markets have grown into a space where people can bet on real-world events “without any oversight,” and warned that the setup can open the door to insider trading and misuse of confidential information. The Illinois release said the state wanted to strengthen existing ethics rules as these platforms expand.
Additionally, the two executive orders arrive as prediction markets draw more attention from lawmakers, regulators and the courts. New York’s order points to reported trading around military activity, elections and other public events, saying recent news reports raised questions about whether people with access to nonpublic government information may have profited from those markets.
At the same time, industry activity has continued to grow. Market data showed prediction market trading volume in March reached record levels above $20 billion, as trading spread across sports, politics and global events. That growth has added pressure for clearer rules on who can trade and what conduct should trigger enforcement.
State action adds pressure on Kalshi and peers
New York has already taken direct action against Kalshi. Hochul’s office said the New York State Gaming Commission sent the company a cease-and-desist letter in October, alleging it was operating an unlicensed mobile sports wagering platform in the state. The new ethics order adds another layer of state pressure around prediction-market activity.
Kalshi is also fighting state regulators in Nevada. A Nevada judge this month extended a ban blocking the company from offering event contracts in the state without a gaming license. Together, the New York and Illinois orders show that states are still moving to police prediction markets even as federal oversight remains contested.
