New York Governor Hochul targets prediction markets amid growing concerns of insider betting

New York Governor Kathy Hochul has signed an executive order prohibiting state employees from using nonpublic information obtained through their official duties to profit from or avoid losses in prediction markets. This action comes amid increasing concerns about insider betting on these platforms, which have seen a surge in popularity for wagers on events like political outcomes and military operations. The order aims to prevent the misuse of privileged information for personal gain. The regulation of prediction markets is a contentious issue, with the Commodity Futures Trading Commission (CFTC) asserting exclusive jurisdiction and taking legal action against states attempting to shut down these markets. Meanwhile, states like New York, through its Attorney General, have also pursued legal action, labeling some prediction market operations as illegal gambling. Recent incidents, including a large payout on Polymarket related to Venezuelan President Maduro's status and Kalshi's enforcement actions against candidates betting on their own races, have intensified scrutiny on insider trading within these markets.

(Source：The Block)