RALEIGH, N.C. (NCN News) — With the proliferation of “prediction markets,” where people can bet on the outcome on a wide range of events, not just sports–Governor Josh Stein has signed an executive order to ban state employees from using inside information to place bets.
The order signed during an “NC Strong Update” establishes ethics guardrails by prohibiting state employees from using information they gained at work to participate in prediction markets. The order serves as an extension of the North Carolina State Ethics Act, a law prohibiting public servants from using or disclosing nonpublic information gained through their official responsibilities toward their own personal financial interest.
“When people use nonpublic information gained at work to get an unfair advantage, it erodes public trust,” said Governor Josh Stein. “This executive order guarantees that our state government will lead with integrity.”
In 2025, the prediction market trading was estimated at $63.5 billion in volume, a 300% increase from 2024.
Specifically, the executive order prohibits state employees from:
- Using the nonpublic information they gain at work to participate in prediction markets for their personal financial benefit, or to assist someone else in their participation in prediction markets;
- Letting their bets influence their job responsibilities;
- Participating in prediction market transactions substantially related to their work or responsibilities, or transactions directly related to the work of their employing agency; and
- Using state resources to participate in prediction markets.
A violation may result in disciplinary action as permitted under relevant state employment law and may be referred to the State Ethics Commission and/or law enforcement.
Governors across the country have signed executive orders prohibiting state employees from using nonpublic government information to place wagers, or helping others profit, on platforms such as Polymarket and Kalshi. Some states are trying to ban prediction markets entirely.