Wisconsin governor bars state workers from using insider information on prediction markets

Wisconsin Governor Tony Evers signed an executive order on Thursday prohibiting executive branch employees from using or disclosing nonpublic information to profit from prediction markets, as states increase scrutiny of the rapidly growing sector.

The order applies to more than 30,000 Wisconsin state employees and bars workers from sharing insider information with spouses, relatives, or others who could use it to place profitable wagers on prediction market platforms.

Violations could result in dismissal, referral to the Wisconsin Ethics Commission or criminal investigation.

Prediction markets, including platforms such as Kalshi and Polymarket, allow users to trade contracts tied to the outcomes of real-life events such as elections, sports, weather events, and government actions.

Evers said: “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.

“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.”

The order cited a recent case involving a U.S. Army Special Forces soldier accused of using classified information to earn about $410,000 on a prediction market tied to the timing of a possible U.S. operation in Venezuela. Federal prosecutors charged the soldier under the Commodity Exchange Act.

Wisconsin joins Illinois, New York, Maryland, and California in adopting restrictions related to insider trading on prediction markets. The U.S. Senate also recently approved a rule barring senators from trading on such platforms.

The move comes as Wisconsin remains locked in legal disputes over prediction markets and sports-event contracts. Last month, Wisconsin’s Department of Justice sued Kalshi, Robinhood, Coinbase, Polymarket, and Crypto.com, alleging the platforms facilitate illegal sports betting in the state.

The federal government later countersued Wisconsin, arguing the state was improperly interfering with federally regulated financial markets. 

Separately, the Ho-Chunk Nation sued Kalshi, alleging the platform enables illegal sports betting activity in Wisconsin, where sports wagering is largely limited to tribal casinos operating under state agreements.

Kalshi has argued that its products are financial event contracts rather than sports bets.

Earlier this week, U.S. District Judge William Conley allowed the Ho-Chunk Nation lawsuit to proceed but denied a request for a temporary injunction that would have halted Kalshi’s operations on tribal lands.