New York and Illinois have issued new executive orders that block covered state employees from using nonpublic government information to make money in prediction markets. Illinois Gov. J.B. Pritzker signed Executive Order 2026-04 on April 21. A day later, New York Gov. Kathy Hochul signed Executive Order No. 60. Both orders took effect immediately. The moves do not appear to ban every form of prediction market activity by state workers. Instead, both states focused on insider information tied to public service. Each order says government workers cannot use information gained through official duties to seek profit, avoid losses, or help others trade on that information. Both governors framed the action as a public trust issue. Illinois said public confidence suffers when employees use official positions for personal gain. New York said government decisions should not be influenced by personal financial interests and warned that the spread of prediction markets raises the risk of misconduct by people with privileged information. Illinois order targets executive branch workers Illinois defined a “State Agency” as any executive branch office, department, agency, board, commission, or authority. It defined a “State Employee” as any employee, officer, appointee, or board member of those agencies. Under the order, those workers cannot use nonpublic information from their roles in connection with a prediction market or event contract of any kind. The Illinois order also says state workers cannot disclose that information to others when they know, or should know, it could be used in a prediction market or event contract. In addition, it cites existing Illinois law that already bars current or former state officials and employees from using confidential government information for actual or expected gain. Pritzker’s order goes further in its criticism of the market itself. It says prediction markets and event contracts lack meaningful regulatory oversight to prevent insider trading, market manipulation, underage access, and other abuse. The order also argues that the growth of those markets harms the public interest and weakens the state’s regulated gaming system. New York order stresses ethics and enforcement New York’s order covers officers and employees who serve at the pleasure of the governor or their appointing authority, along with governor-appointed public authority members. It says those individuals cannot use nonpublic information obtained through their official duties to profit from prediction markets or similar services, or to avoid financial loss through them. The order also bars covered workers from helping others profit from that information. New York said violations may lead to dismissal, other disciplinary action, or referral to law enforcement and ethics authorities. The governor’s office described the move as a nation leading order against insider trading on prediction markets. Hochul’s order adds a licensing point not spelled out the same way in Illinois. It defines prediction markets as exchange traded platforms or services not licensed by the New York State Gaming Commission. That wording ties the state’s ethics action to New York’s broader position that some forms of prediction market activity raise gambling and regulatory concerns.
