Madison, Wisconsin — Wisconsin Gov. Tony Evers signed an executive order Thursday prohibiting executive branch employees from using or disclosing nonpublic government information to profit from prediction markets, joining several other states moving to tighten ethics rules around the rapidly growing industry.
The order bars state employees from leveraging confidential information gained through public service for financial gain on platforms such as Kalshi, where users place wagers on political outcomes, government actions, and economic events.
Evers said the measure is aimed at maintaining public confidence in state government and preventing misuse of insider information by public officials.
“Maintaining public trust and confidence in our state government demands and depends upon transparency, accountability, and integrity,” Evers said in a statement announcing the order.
The directive follows reports involving a U.S. Army Special Forces soldier who allegedly earned more than $400,000 on a prediction market using nonpublic information. Concerns over insider trading and ethical conflicts have increased as prediction markets expand in popularity and begin intersecting with government and political events.
Wisconsin joins Illinois, New York, Maryland, and California in taking action related to government employee participation in prediction markets. At the federal level, the U.S. Senate recently approved a bipartisan rule prohibiting senators from trading on such platforms.
Prediction markets have drawn growing scrutiny from lawmakers and regulators as they increasingly resemble financial trading systems tied to sensitive political and government developments.
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