The Governor of New York signed an executive order restricting public officials from engaging in insider trading in prediction markets.

New York Governor Kathy Hochul signed an executive order on Wednesday prohibiting state employees from using non-public information to trade in prediction markets or assist others in profiting from them, a move aimed at addressing growing concerns about "insider betting" in prediction markets. According to the executive order, all government officials and public agency members appointed by or under the jurisdiction of the governor are prohibited from using any non-public information obtained in the course of their duties to profit from or avoid losses in prediction markets or similar services, nor from assisting others in such operations. The governor stated in the document that the "rapid expansion of prediction markets" has raised regulatory concerns. The day before, Illinois Governor JB Pritzker also issued a similar executive order prohibiting state government personnel from using non-public information to participate in prediction market betting. Meanwhile, prediction market platform Kalshi disclosed that it has launched investigations into three insider trading cases involving candidates and has fined and suspended trading for those involved. One of those penalized is Mark Moran, a Democratic primary candidate for the Virginia Senate, who was penalized for betting on his own campaign and stated that he "hopes to be found out."