Minnesota Prohibits State Employees from Using Nonpublic Information on Prediction Markets

Minnesota Gov. Tim Walz recently issued an executive order that bans the state’s government employees from using non-public government information to bet on prediction markets.

As Walz noted in the order, online prediction markets “have surged in popularity in recent years, allowing people to place wagers on the future outcome of specific events including sports, elections and world affairs through so-called event contracts.”

These prediction markets are also “highly susceptible to insider trading,” the order read, “allowing people with access to non-public or confidential information to manipulate markets to their advantage.”

The Minnesota directive comes on the heels of an Arizona mandate that “strictly forbids” all of the state’s executive branch employees from disclosing or using any non-public information to profit, avoid financial loss or assist others in profiting from prediction markets.

In issuing that order, Arizona Gov. Katie 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.”

In his July 28 order, Walz said there are “dozens of examples of insiders cashing in” via their knowledge of non-public information, while stressing the importance of maintaining standards for ethical behavior among government employees.

“An individual’s position in government should not and cannot give them an unfair financial advantage. Ethical and transparent government is vital to maintaining trust and confidence in the integrity of our public institutions.”