Illinois Gov. JB Pritzker on Tuesday signed an executive order barring state employees from using insider information to bet on prediction market apps, joining six other states that have moved to either restrict or regulate the burgeoning betting field.
Users on apps like Kalshi and Polymarket are betting on everything from the results of elections to economic decisions or war outcomes — even what words President Donald Trump will say in speeches. The governor said he’s concerned about the lack of oversight, including bets on events in which state employees can influence the outcome.
“This opens the door to insider trading and abuse of confidential information,” the governor said in a statement provided to the Sun-Times. “While the Trump Administration continues to be riddled with stories of appointees looking to make a profit, Illinois is stepping up to ensure those who are serving the public, not their own personal financial gain.”
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The governor’s office cited recent examples of inside trading, including highly accurate bets made in February regarding U.S. Israel strikes on Iran, an anonymous trader who earned more than $400,000 after placing large bets on the removal of Venezuelan President Nicolás Maduro and a user who placed a $40,000 bet that Open AI would launch an AI web browser before the end of the month. Another example cited was a trader who placed a surge of bets on Taylor Swift’s engagement shortly before it was publicly announced and earned significant returns.
Illinois law already prohibits current or former elected or appointed state officials or employees from using confidential information to gain for themselves or others. But the new executive order strengthens those protections in response to the risks of the newly popular prediction market apps and event-based gambling.
Under the order, any Illinois state employee, officer, appointee or board member of any state agency is prohibited from using nonpublic information to bet on prediction markets or event-based contracts. They also can’t share or use nonpublic information to help any other person in participating, regardless of relationship, affiliation or whether that person profits.
U.S. Rep. Nikki Budzinski, D-Ill., and Rep. Adrian Smith, R-Neb., last month also introduced federal legislation that would ban members of Congress from using prediction market apps related to political events or policy decisions. It would also extend to dependents and spouses, senior staffers, political appointees, the president, vice president and all senior executive branch employees.
Last week, former Chicago Mayor Rahm Emanuel, who is also mulling a 2028 presidential bid, voiced support for a 10% federal tax on online sports betting and prediction markets to boost revenue for science and technology. Emanuel has also said he supports a ban for federal employees.
California Gov. Gavin Newsom, one of several Democrats likely to run for president in 2028, issued a similar executive order last month. Newsom’s executive order prohibits California state officials from using insider knowledge to profit, or assist another person in profiting, on prediction markets. Nevada, Connecticut, Arizona, Utah and Tennessee have also taken steps targeting prediction market apps.
Pritzker’s executive order goes into effect immediately.
