Gov. Evers bars Wisconsin employees from exploiting insider information through prediction markets

Wisconsin Gov. Tony Evers signed an executive order Thursday (May 14) blocking state employees from using confidential government information to make money through prediction markets and online betting platforms. The order is aimed at tightening ethics rules as wagering markets tied to politics, sports, and government activity continue growing across the country.

Executive Order 294 applies to executive branch workers and bars them from using nonpublic information obtained through state jobs to personally profit, avoid losses, or help others financially benefit through prediction markets or related betting activity.

“State workers in Wisconsin work hard every day in dedicated service of the people of our state, often going above and beyond their job description and daily responsibilities to support Wisconsinites and our communities and meet their needs,” Evers said in a statement.

“Maintaining public trust and confidence in our state government demands and depends upon transparency, accountability, and integrity, and upholding the fundamental tenet of public service that, above all, the work must be for the benefit of the public good and not for personal greed or gain. That is a commitment we take seriously, and we must continue to do so.”

Evers signs Wisconsin insider trading order amid scrutiny around prediction markets

The governor’s office said Wisconsin already enforces broad ethics standards for public employees, but officials believe prediction markets require more direct rules because those platforms increasingly allow users to place wagers on elections, legislation, economic decisions, sports outcomes, and international events.

The order states employees cannot use confidential government information “to personally profit from, avoid loss from, or assist another person or entity, including spouses and family members, in profiting or avoiding loss from participation in prediction markets.”

State officials said there have been no known incidents involving Wisconsin employees improperly using insider information. Still, the administration pointed to a recent federal case involving a U.S. Special Forces soldier accused of using classified information tied to a military operation involving former Venezuelan President Nicolás Maduro to earn more than $400,000 on a prediction platform.

Wisconsin has also become a major battleground over prediction market regulation. Last month, state regulators sued prediction market companies over allegations they were operating illegal sports betting systems without authorization under Wisconsin law. Federal regulators later escalated the dispute when the Commodity Futures Trading Commission sued Wisconsin officials, arguing the state was improperly attempting to regulate federally approved event contracts.

Separate litigation involving Kalshi and the Ho-Chunk Nation added another layer to the conflict after a federal judge considered whether tribal gaming interests could challenge prediction market operations connected to sports-related contracts.

Evers’ administration said Illinois, New York, Maryland, and California have adopted similar restrictions tied to insider information and prediction markets. The U.S. Senate also recently approved a rule prohibiting senators from trading on those platforms.

Under the Wisconsin order, employees who violate the policy could face termination, ethics referrals, disciplinary action, or possible law enforcement investigation.

Featured image: Defense Visual Information Distribution Service

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