Gov. Pritzker Issues Executive Order to Strengthen State Ethics Rules on Prediction Markets
As the Trump Administration fails to provide federal oversight, Illinois builds on existing law to protect public trust and prevent insider trading in prediction markets
April 21, 2026
CHICAGO - Today, Governor JB Pritzker issued Executive Order 2026 – 04 to strengthen guardrails across state government, prohibiting state employees from using nonpublic information to participate or assist any person in prediction markets and event-based contracts. Illinois is doubling down on its commitment to a transparent and ethical government by bolstering its current state laws to prevent insider trading amid the rapid growth of online prediction markets and event-based gambling contracts.
"Prediction markets have rapidly grown into a space where people can bet on real-world events without any oversight, including events people can influence,” said Governor JB Pritzker. “This opens the door to insider trading and abuse of confidential information. 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.”
Prediction markets and event contracts, which allow individuals to bet on outcomes ranging from policy decisions to sports, operate with little to no regulatory oversight or safeguards. These platforms currently have very few meaningful regulatory or enforcement guardrails to prevent insider trading and market manipulation, protect consumers, help those facing gambling addictions, restrict access to minors, and deter criminal activity. The rapid increase of these unlicensed markets in Illinois allows for the potential for insider trading by state employees and as a result threatens to undermine public trust and integrity in Illinois government.
As extensive reporting suggests, Trump insiders appear not only betting on prediction markets – they are seemingly influencing the outcomes for personal gain. The ability to not only profit off insider knowledge, but also influence those outcomes, represents a dangerous escalation of corruption that continues to go unchecked by the federal government.
In the context of State contracting and procurement, Illinois law already prohibits any current or former elected or appointed state official or employee from knowingly using confidential information available only by virtue of that office or employment for actual or anticipated gain for themselves or another person. This executive order strengthens those protections in response to emerging risks tied to prediction markets and event-based gambling.
Under the Executive Order:
Any Illinois state employee, officer, appointee or board member of any State Agency are prohibited from:
- The use of nonpublic information obtained through one’s official position to participate in prediction markets or event-based contracts — regardless of whether the individual ultimately profits.
- Sharing or using nonpublic information to assist any other person in participating in these markets — regardless of relationship, affiliation, or whether that person profits.
This action comes as the Trump Administration seeks to strip states of their authority to regulate prediction markets, shifting oversight exclusively to the federal government. Such efforts would limit states’ ability to enforce consumer protections, establish guardrails, and prevent individuals from profiting off insider information in an industry that currently operates with little to no comprehensive regulation. Illinois maintains that states must retain the ability to protect consumers, uphold ethical standards, and ensure that new forms of wagering do not undermine public trust.
The Executive Order will go into effect immediately. Please find the full text below.
Recent Examples of Potential Insider Trading:
The order also comes amid mounting concerns about potential insider trading in prediction markets, including multiple instances of traders placing highly profitable bets shortly before major real-world events:
- Newly created accounts placed large, highly accurate bets shortly before the February 2026 U.S.-Israel strikes on Iran, generating significant profits and raising questions about access to nonpublic information.
- An anonymous trader earned more than $400,000 after placing large bets on the removal of Venezuelan President Nicolás Maduro — making many of those wagers just hours before a U.S. operation was publicly announced.
- A user placed a $40,000 bet that OpenAI would launch an AI web browser before the end of the month, which proved accurate shortly after and resulted in thousands of dollars in profit.
- A trader placed a surge of bets on Taylor Swift’s engagement shortly before it was publicly announced, buying shares while markets still priced the outcome as unlikely and ultimately earning significant returns.
Executive Order 2026-04 Prediction Markets and Event Contracts.pdf
PDF - 96 Kb
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