Evers Bans Wisconsin State Workers From Using Insider Information on Prediction Markets

Overview

• The order, signed Thursday, bars executive-branch employees from using or sharing nonpublic information to profit on prediction markets, which let people buy contracts tied to real-world events.
• Violations can lead to firing, referral to the Wisconsin Ethics Commission, or referral to law enforcement for a criminal investigation.
• Evers’ office said no misuse by Wisconsin workers has been identified, but the policy responds to national concerns after a U.S. soldier was charged with using classified information to win more than $400,000 on an online market.
• Legal battles over these platforms are active, after Wisconsin sued several companies last month, the federal government countersued the state, and a judge this week allowed the Ho-Chunk Nation’s case against Kalshi to proceed.
• Wisconsin restricts sports betting to tribal operations, and a new law will permit online wagering only through tribes, shaping how officials view prediction markets that companies argue are financial exchanges rather than betting.