State employees and others prohibited from using inside information to bet on prediction markets
The Governor of New York has issued an executive order banning state employees from using inside information to bet on prediction markets.
The executive order from Governor Kathy Hochul applies to state officers and employees, and to members of any public authority who are appointed by the governor.
The order prohibits these individuals from using any non-public information obtained in the course of their official duties to seek profit or avoid loss in a prediction market of similar service, or to assist others to do so.
“Getting rich by betting on inside information is corruption, plain and simple,” said Governor Hochul. “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.”
In a statement announcing the executive order, which was signed on Wednesday, the governor’s office referenced recent prediction market scandals, including the $400,000 payout by Polymarket in January on bets related to Venezuela and the capture of its then-president, Nicolás Maduro.
The identity of the anonymous better, who many had speculated to be a Trump administration insider, was disclosed on Thursday when the Department of Justice indicted army soldier Gannon Ken Van Dyke.
Van Dyke was involved in planning and executing the operation to capture Maduro and is said to have used this information to make a profit of more than $400,000 from Venezuela-related bets on Polymarket.
Governor Hochul’s action to ban insider trading by government employees follows a similar executive order earlier this week from Illinois Governor JB Pritzker.