Gavin Newsom is taking action against public officials who profit from prediction markets. Key Takeaways
- Gov. Gavin Newsom said his office won’t tolerate prediction market "corruption” in California.
- The executive order bans appointees from using nonpublic information or providing it to others.
- Kalshi and Polymarket have claimed they already ban insiders.
The California governor issued an executive order Friday that bans gubernatorial appointees from using nonpublic information to purchase contracts on markets offered by platforms like Kalshi and Polymarket. Officials are also prohibited from helping family members, business partners, and others make money off of real-world event contracts through inside information. Newsom’s stance comes at a time when critics have challenged President Donald Trump’s administration and accused public officials of profiting from nonpublic information to manipulate prediction markets in war, politics, and federal decision-making. "Public service should not be a get-rich-quick scheme,” Newsom said in a statement released by his office. "At a time when Trump’s Washington is riddled with ethical failures and insider profiteering, California is drawing a bright line: If you serve the public as a political appointee, you serve the public - period. We’re not going to tolerate this kind of corruption in California.”
https://www.covers.com/industry/california-governor-bans-appointees-from-insider-trading-prediction-markets-march-27-2026