Pritzker executive order bars state employees from using insider info in
prediction markets
[April 22, 2026]
By Maggie Dougherty
CHICAGO — Gov. JB Pritzker signed an executive order Tuesday barring
state employees from using insider information to place bets on
prediction markets like Polymarket and Kalshi.
The apps, which allow users to bet on real world events like the outcome
of Illinois’ gubernatorial race or whether the Bears will leave the
state by the end of the year have been a source of ire for Pritzker in
the state’s tug of war with the Trump administration for regulatory
authority.
Though Illinois law already prohibits current and former state employees
from using confidential information obtained through their positions for
personal gain, the governor’s office said the new order strengthens
those protections in response to “emerging risks” posed by the markets
amid a rollback in federal oversight.
“Prediction markets have rapidly grown into a space where people can bet
on real-world events without any oversight, including events people can
influence,” Pritzker said in a statement accompanying the order. “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.”
The statement pointed to profitable bets placed before the announcement
of U.S. military actions, suggesting that they may have been informed by
insider information. Examples include “highly accurate” bets placed
ahead of U.S.-Israel strikes on Iran and a wager favoring the removal of
then-Venezuelan President Nicolás Maduro hours before the U.S. operation
was publicly announced.
President Donald Trump, his family and business associates have been
widely criticized for making millions, sometimes hundreds of millions,
for making bets in the unregulated prediction markets shortly before
Trump announcements.
The order, which takes effect immediately, also prohibits state
employees from sharing insider information to help others make bets on
prediction markets. The order applies to all employees, officers,
appointees and board members of state agencies.
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Prediction markets like Polymarket and Kalshi allow users the
ability to bet on real-world events such as the outcome of elections
or whether the Bears will leave Illinois. (Capitol News Illinois
screenshot by Maggie Dougherty)
Jurisdictional tug of war
Since last April, the Illinois Gaming Board has sent cease and desist
letters to over a dozen online gaming operators, including Polymarket,
Kalshi, Robinhood and Crypto.com, claiming that they offered illegal
gambling in violation of state law.
The federal Commodities Futures Trading Commission struck back earlier
this month, suing Illinois, seeking to block its attempt to regulate the
markets. In its complaint, the CFTC argued that prediction markets are
not a form of gambling, but rather commodities markets like those for
grain futures.
It said the federal government has exclusive regulatory authority over
those markets as established under the Commodity Exchange Act.
But the governor’s office said that prohibiting states from regulating
prediction markets comes with the risk of eroding public trust.
“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,” the office said.
“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.”
Capitol News Illinois is
a nonprofit, nonpartisan news service that distributes state government
coverage to hundreds of news outlets statewide. It is funded primarily
by the Illinois Press Foundation and the Robert R. McCormick Foundation.
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