North Carolina governor prohibits state employees from exploiting insider data in prediction markets

(AsiaGameHub) –   Governor Josh Stein has enacted an executive order that expands the state’s Ethics Act.

In the US, North Carolina Governor Josh Stein has issued an executive order preventing state employees from leveraging work-acquired information for participation in prediction markets. This directive builds upon the state’s Ethics Act, which already forbids public servants from utilizing insights gained via their official duties for personal financial gain.

Furthermore, the executive order bars state employees from aiding others in their prediction market wagers and from allowing such wagers to sway their professional duties. Public sector personnel are disallowed from engaging in prediction market activities connected to their roles or responsibilities, or those directly linked to their employing agency’s operations. The directive also forbids the deployment of state assets for prediction market involvement, encompassing state time, premises, equipment, networks, finances, systems, and other governmental property or services.

Breaches of this order could lead to disciplinary measures under pertinent state employment legislation and may be escalated to the State Ethics Commission and/or law enforcement. An online prediction market is characterized as “an online platform, exchange, market, or mechanism that facilitates agreements, contracts, transactions, or swaps among users concerning the occurrence, non-occurrence, or specific outcome of a future event.”

Stein commented: “When individuals exploit nonpublic information acquired through their employment for an unfair advantage, it diminishes public confidence. This executive order ensures that our state government will operate with integrity.”

Earlier in the current month, Minnesota emerged as the inaugural US state to ban prediction markets. Governor Tim Walz endorsed the measure following its passage with robust bipartisan backing, and it is slated to become effective on August 1, 2026.

Although other states have issued cease-and-desist orders or regulatory advisories, Minnesota’s recent legislation institutes a broad ban on the functioning and promotion of prediction markets not authorized by the state. However, markets concerning weather-related occurrences are still allowed, following the insistence of agricultural stakeholders on the significance of such information for risk management.