Arizona Government Employees Banned From Insider Trading on Prediction Markets

A recent executive order from Arizona Gov. Katie Hobbs prohibits the state’s executive branch employees from using non-public government information to profit on prediction markets.

Hobbs summarized the directive in a July 9 statement, saying that designating non-public information as confidential for this purpose “ensures state workers remain focused on serving Arizonans rather than personal enrichment.”

In issuing the order, Hobbs cited media reports and federal indictments showing government employees in other states using non-public information to win “millions of dollars wagering on government actions, including international military operations.”

The new mandate “strictly forbids” all Arizona executive branch employees from disclosing or using any non-public information to profit, avoid financial loss or assist others in profiting from prediction markets.

Individuals violating the order may be terminated, face other sanctions and referrals to law enforcement. The order also designates all non-public information obtained during public service that could be used for wagers as confidential.

In the aforementioned statement, Hobbs encouraged other statewide elected officials, independent boards and commissions, and the state’s judicial and legislative branches to adopt similar policies for their employees.

“Arizonans deserve a state government that works for them, not one where insiders exploit public service for their own gain,” she said.

“I’m proud to set clear, common-sense ethical standards on prediction markets to hold our government accountable. Public service is a privilege, and we will not tolerate anybody abusing that privilege to line their own pockets.”