Illinois Governor Bars State Employees From Using Insider Information on Prediction Market Apps

Illinois Governor JB Pritzker issued an executive order on Tuesday prohibiting state employees from using confidential information to place bets on prediction market applications. The measure, effective immediately, aims to prevent improper financial gain and abuse of access to privileged information within state government.

The order targets activity on rapidly growing platforms such as Kalshi and Polymarket, where users can wager on a wide array of outcomes, from election results to major world events. Governor Pritzker cited concerns over insufficient oversight and the potential for individuals with government ties to exploit nonpublic knowledge for personal profit.

Under the new directive, all Illinois state employees, officers, appointees, and board members are forbidden from using or sharing insider information to participate in, or support another person’s participation in, prediction markets or event-based contracts. The policy extends regardless of the relationship to or affiliation with the participant, and irrespective of whether a profit is realized.

The governor’s office referenced recent high-profile examples of potential insider trading in similar markets, which included large profitable bets associated with sensitive geopolitical and business events, demonstrating the growing sophistication and risk of abuse in the sector.

While existing Illinois law already barred the use of confidential government information for private gain, this executive order specifically addresses the evolving risks posed by online prediction markets and event-based betting, reflecting a growing national trend. California, Nevada, Connecticut, Arizona, Utah, and Tennessee have introduced comparable regulations or restrictions in the past year.

Pritzker’s move follows calls for tighter federal oversight, including recent bipartisan legislation introduced in Congress to prohibit members and senior government officials from betting on political or policy outcomes. The issue is gaining attention nationwide as betting markets expand and concerns mount over the intersection of public service and private wagering.

The executive order is now in effect. The governor’s office emphasized ongoing review of the policy as the landscape for online prediction markets continues to evolve.