Key Points
- Executive Order No. 60 signed by Governor Kathy Hochul prevents New York government workers from exploiting insider knowledge on prediction trading platforms
- Employees who breach the directive face potential termination, penalties, or criminal referral
- The directive addresses platforms facilitating wagers on governmental, defense, and societal outcomes
- Investigations have identified more than $1 billion in questionable wagers connected to official actions and defense operations
- The state has simultaneously filed lawsuits against Coinbase and Gemini over unauthorized gambling operations
Governor Kathy Hochul of New York has enacted an executive directive prohibiting state government personnel from leveraging confidential information for financial gain on prediction trading platforms.
Filed on April 22, 2026, Executive Order No. 60 encompasses all state officials and workers who serve at the Governor’s discretion, including appointees to public authorities designated by her administration.
The directive explicitly forbids any state worker from utilizing non-public knowledge obtained through their governmental role to generate profits or minimize financial losses on prediction trading venues.
According to Hochul, the measure is fundamentally about preserving the public’s confidence in government. She emphasized that civil servants must leverage their positions for the collective good rather than personal enrichment.
“Getting rich by betting on inside information is corruption, plain and simple,” Hochul said in a statement.
Defining Prediction Trading Platforms
The executive directive characterizes a prediction market as any unauthorized venue enabling individuals to trade contracts tied to prospective events. Such events encompass electoral contests, athletic competitions, or governmental decisions.
These trading venues have experienced substantial expansion in recent years. This rapid development has sparked worries about the potential for individuals with governmental access to manipulate such platforms for personal benefit.
Hochul referenced the “recent proliferation of prediction markets” as justification for the measure. She stated these venues have elevated the potential for unethical conduct among those possessing privileged information access.
The consequences for noncompliance are substantial. Workers who transgress the directive may be terminated, sanctioned, or referred to law enforcement and oversight agencies.
Every public authority throughout the state must now develop internal protocols to implement these limitations.
Questionable Trading Activity Prompts Action
The directive follows multiple investigations connecting substantial prediction market earnings to governmental activities.
In January, an unidentified participant allegedly collected over $400,000 through wagers predicting Venezuelan President Nicolás Maduro’s removal from power.
Investigative efforts have additionally revealed over $1 billion in suspiciously precise bets linked to Iranian conflict developments. These transactions involved predictions about military operation locations, timing, and the Strait of Hormuz’s operational status.
The executive measure reinforces existing provisions within New York’s Public Officers Law, which previously prohibited state workers from exploiting confidential data for private advantage. Hochul’s order expands these restrictions to encompass emerging digital platforms.
Hochul additionally condemned the federal administration’s handling of this matter. She declared New York is “stepping up to lead by example” as Washington turns “a blind eye.”
New York has previously challenged particular platforms. Last October, state Gaming Commission officials dispatched a cease-and-desist notice to Kalshi, alleging unauthorized mobile sports betting operations.
This week, the state sued both Coinbase and Gemini for alleged illegal online gambling.
