California Bans Government Officials from Using Insider Knowledge to Bet on Prediction Markets

“Public service should not be a get-rich-quick scheme,” Gov. Newsom said.
California Bans Government Officials from Using Insider Knowledge to Bet on Prediction Markets
California Gov. Gavin Newsom takes part in a panel discussion during the 62nd Munich Security Conference (MSC) in Munich, southern Germany, on Feb. 13, 2026. Alexandra Beier/AFP via Getty Images
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California Gov. Gavin Newsom on Friday issued an executive order banning state officials from using insider knowledge to profit, or assist another person in profiting, on prediction markets, effective immediately.
The Governor’s office said there have been mounting reports of individuals in the federal government with access to sensitive government information placing well-timed bets ahead of major Trump administration actions. These reports are currently allegations and have yet to be verified.