New York and Illinois Ban State Employees from Prediction Market Betting Amid Record Trading Volume

New York and Illinois have issued executive orders prohibiting state employees from participating in prediction market betting, as monthly trading volume reached a record $23.6 billion in March. According to NS3.AI, New York has warned that violations of this order could lead to dismissal and potential legal action. The directive also prevents employees from using confidential information to assist others in gaining profits. These measures come as state scrutiny intensifies around platforms like Kalshi, which is already facing a cease-and-desist letter in New York and is involved in a legal dispute in Nevada. The orders reflect growing concerns over the integrity and regulation of prediction markets, as authorities aim to prevent misuse of insider information and ensure fair trading practices.