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North Carolina Gov. Josh Stein signed an executive order Wednesday banning state employees from using insider information to bet on prediction market platforms like Kalshi and Polymarket.
The order expands on the state’s existing Ethics Act, which already bars public servants and legislative employees from using confidential information for personal financial gain.
“Public employees with insider information must not participate in these prediction markets,” said Stein, a Democrat. “People need to have faith that their public servants are working on their behalf, not leveraging their knowledge unfairly to win a bet and make money.”
Stein said he has no evidence that North Carolina employees have used insider knowledge to make trades, but argued the policy is necessary to strengthen public trust in government.
“I don’t expect the executive order will impact (employees’) daily lives, but what it will do is increase the public’s confidence that we work for them,” Stein said.
North Carolina joins California, Illinois, Maryland and New York in restricting state employees from profiting through prediction markets using confidential government information. All five states are led by Democratic governors.
The executive order applies to all Executive Branch agencies, including their boards and commissions. However, it does not cover the Council of State agencies, the North Carolina General Assembly, the state Judicial Branch or the University of North Carolina System. Stein encouraged leaders of those institutions to adopt similar policies.
The move comes weeks after a soldier stationed at Fort Bragg was federally charged for allegedly using inside knowledge on the capture of Venezuelan President Nicolás Maduro to place trades on Polymarket. Prosecutors say the trades generated roughly $400,000 in profits.
When asked whether that case influenced the decision to issue the order, Stein said broader concerns about insider betting activity also played a role.
“There is story after story after story of insane bets, bets of millions of dollars, immediately before an action takes place and then the action takes place. And it’s corrupting,” he said.