Wisconsin Bans Insider Trading in Prediction Markets

Dr. Annelies De Vos · 2026-05-15

Governor Tony Evers signed Executive Order #294 on Thursday, May 14, taking aim at a new kind of insider trading: using confidential government knowledge to bet on prediction markets. The order stops executive branch employees from sharing or profiting from nonpublic information they get through their jobs. It covers everything from policy decisions to economic data that hasn't been released to the public yet. This move makes Wisconsin one of the first states to explicitly address prediction markets, which are platforms where people wager on outcomes like election results, interest rates, or even weather events. These markets have grown fast in the last few years, and they're raising questions about fairness and ethics. ### What Are Prediction Markets? Prediction markets let you bet on future events. Think of them like sports betting, but instead of game scores, you're betting on "Will the Fed raise rates in June?" or "Who will win the 2026 election?" They're legal in some places and operate in a gray area in others. The problem is that insider knowledge gives state workers an unfair edge. If someone knows a policy change is coming before it's announced, they could bet on that outcome and make a quick profit. That's exactly what the executive order targets. ### Key Details of Executive Order #294 The order applies to all executive branch employees in Wisconsin. Here's what it does: - Bans disclosing nonpublic information to anyone for use in prediction markets - Prohibits employees from personally profiting from insider knowledge - Extends the ban to family members who might benefit - Covers all types of prediction markets, not just political ones Governor Evers said, "State workers in Wisconsin work hard every day in dedicated service of the people of our state, often going above and beyond their job description and daily responsibilities to support Wisconsinites." He added that this order ensures their integrity isn't compromised by personal financial gain. ### Why This Matters Now Prediction markets have exploded in popularity. Some estimate the global market could be worth over $100 billion by 2030. As they grow, so do concerns about manipulation. Wisconsin's order is a response to that trend. Other states are watching closely. If this works, you might see similar rules in places like California or New York. The federal government hasn't stepped in yet, but state-level actions like this could push for national standards. ### What's Next for State Employees For now, Wisconsin workers need to be careful. The order doesn't just ban betting—it bans sharing tips with anyone else. That includes friends, family, or even strangers online. Violations could lead to disciplinary action, including termination. The order also requires agencies to educate employees about the new rules. Training sessions are expected in the coming weeks. Workers who have questions can contact their ethics office. This is a smart move. It protects the public's trust and keeps government decisions honest. And it sets a precedent that might spread across the country. *Note: This article uses nofollow links to external sources where applicable.*