New York Bars State Employees From Profiting on Prediction Market Trades
New York has reportedly moved to block state employees from using insider knowledge to bet on prediction markets, escalating a growing national crackdown on the controversial platforms.
According to WIRED, the new executive order bars government workers from profiting off nonpublic information through sites like Kalshi and Polymarket, where users wager on real-world events.
The move comes as regulators warn these markets could be exploited by insiders with access to sensitive policy or geopolitical decisions.
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Similar action already took place in California, where officials were banned from using inside knowledge after reports of unusually well-timed bets tied to global events.
Experts say enforcement remains difficult because prediction markets operate in a legal gray area and often resemble gambling platforms.
The New York order signals mounting concern that public employees could turn privileged information into profit as the industry rapidly expands.
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