North Carolina governor bans state employees from using insider information on prediction markets
Governor Josh Stein has signed an executive order extending the state’s Ethics Act.
US.- North Carolina Governor Josh Stein has signed an executive order that prohibits state employees from using information they gained at work to participate in prediction markets. The order is an extension of the state’s Ethics Act, which prohibits public workers from using information gained through their official responsibilities for their own personal financial interest.
The executive order also prohibits state employees from assisting someone else in their bets on a prediction market and from letting their bets influence their job responsibilities. State workers are forbidden from participating in prediction market transactions related to their work or responsibilities, or transactions directly related to the work of their employing agency. The order also prohibits the use of state resources to participate in prediction markets, including state time, facilities, devices, networks, funds, systems and other government property or services.
A violation may result in disciplinary action under relevant state employment law and may be referred to the State Ethics Commission and/or law enforcement. An online prediction market is defined as “an online platform, exchange, market, or mechanism that allows agreements, contracts, transactions, or swaps between users over the occurrence, non-occurrence, or specific outcome of a future event.”
Stein said: “When people use nonpublic information gained at work to get an unfair advantage, it erodes public trust. This executive order guarantees that our state government will lead with integrity.”
Earlier this month, Minnesota became the first US state to outlaw prediction markets. The measure was signed by Governor Tim Walz after passing with strong bipartisan support and is scheduled to take effect on August 1, 2026.
While other states have issued cease-and-desist letters or regulatory warnings, Minnesota’s new law establishes a general prohibition on the operation and advertising of prediction markets not sanctioned by the state. Markets on weather-related events remain permitted, after agricultural stakeholders insisted on the importance of such data for risk management.
