TLDR
- Governor Kathy Hochul signed Executive Order No. 60 banning New York state employees from profiting on prediction markets using insider information
- Violations can result in dismissal, sanctions, or referral to law enforcement
- The order targets platforms where users bet on political, military, and social events
- Reports have linked over $1 billion in suspicious trades to government actions and military strikes
- New York has also sued Coinbase and Gemini this week for alleged illegal online gambling
New York Governor Kathy Hochul has signed an executive order that bars state employees from using insider information to make money on prediction markets.
Executive Order No. 60 was filed on April 22, 2026. It applies to all state officers and employees serving at the Governor’s pleasure, along with members of public authorities appointed by her office.
The order makes it clear that no state employee may use nonpublic information gained through their official duties to profit or avoid losses on prediction markets.
Hochul said the order is rooted in protecting public trust. She wrote that public servants are expected to use their positions to benefit the public, not to chase personal financial gain.
“Getting rich by betting on inside information is corruption, plain and simple,” Hochul said in a statement.
What Counts as a Prediction Market
The executive order defines a prediction market as any unlicensed platform that lets people buy and sell contracts based on future events. Those events can include elections, sporting outcomes, or government actions.
These platforms have grown rapidly in recent years. That growth has raised concerns about how easily someone with access to government information could exploit it for profit.
Hochul pointed to the “recent proliferation of prediction markets” as a reason for the order. She said these platforms have increased the risk of misconduct by people with privileged access to information.
The penalties for breaking the rule are serious. Employees who violate the order face dismissal, sanctions, or referral to law enforcement and ethics authorities.
Each public authority in the state must now create internal policies to enforce the restrictions.
Suspicious Trades Draw Attention
The order comes after a series of reports linking large profits on prediction markets to government actions.
In January, an anonymous trader reportedly earned more than $400,000 by betting that Venezuelan President Nicolás Maduro would be removed from office.
Investigations have also uncovered more than $1 billion in what have been described as “perfectly-timed” wagers connected to the war in Iran. Those bets were placed on the location and timing of military strikes and the status of the Strait of Hormuz.
The executive order builds on existing rules in New York’s Public Officers Law, which already bars state employees from using confidential information for personal benefit. Hochul’s directive extends those rules to cover newer platforms.
Hochul also criticized the federal government’s approach to the issue. She said New York is “stepping up to lead by example” while Washington turns “a blind eye.”
New York has already taken action against specific platforms. Last October, the state Gaming Commission sent a cease-and-desist letter to Kalshi, accusing the company of running an unlicensed mobile sports wagering service.
This week, the state sued both Coinbase and Gemini for alleged illegal online gambling.
