Key Points
- Executive Order No. 60, signed by Governor Kathy Hochul, prohibits New York government workers from exploiting insider knowledge on prediction platforms
- Offenders face potential termination, penalties, or criminal prosecution
- The directive applies to platforms facilitating wagers on political outcomes, military operations, and societal developments
- Investigations have uncovered more than $1 billion in questionable wagers connected to governmental decisions and combat operations
- The state has simultaneously filed lawsuits against Coinbase and Gemini over alleged unlawful internet gambling operations
Governor Kathy Hochul of New York has enacted an executive directive preventing government workers from leveraging confidential information for financial benefit on prediction trading platforms.
Executive Order No. 60 became official on April 22, 2026. The mandate encompasses all state officials and personnel serving under the Governor’s authority, including appointees to public agencies selected by her administration.
The directive explicitly prohibits any government employee from utilizing privileged information obtained during their official capacity to generate profits or prevent financial losses through prediction market transactions.
Hochul emphasized that the measure stems from safeguarding the public’s confidence in government. She stated that civil servants hold a responsibility to leverage their roles for community welfare rather than pursuing individual monetary enrichment.
“Profiting from wagers based on confidential information represents nothing less than corruption,” Hochul declared in her official statement.
Defining Prediction Market Platforms
The executive directive characterizes a prediction market as any unauthorized platform enabling individuals to trade contracts tied to prospective occurrences. These scenarios may encompass electoral contests, athletic competitions, or policy decisions.
Such platforms have experienced substantial expansion in recent times. This surge has sparked alarm regarding the ease with which individuals possessing governmental intelligence could abuse it for monetary advantage.
Hochul referenced the “dramatic expansion of prediction markets in recent times” as justification for the directive. She indicated these platforms have amplified the potential for impropriety by individuals holding privileged information access.
The consequences for violating the regulation are substantial. Workers who breach the order risk termination, disciplinary measures, or referral to criminal investigators and ethics oversight bodies.
Every public agency throughout the state must now establish internal guidelines to implement these restrictions.
Questionable Trading Activity Raises Alarms
The directive follows multiple reports connecting substantial prediction market earnings to governmental operations.
During January, an unidentified participant allegedly collected over $400,000 through wagers predicting Venezuelan President Nicolás Maduro’s removal from power.
Inquiries have additionally revealed exceeding $1 billion in allegedly “suspiciously-timed” trades associated with Iranian conflict activities. These transactions involved predictions regarding military attack locations, timing, and the operational condition of the Strait of Hormuz.
The executive directive expands upon current provisions within New York’s Public Officers Law, which previously prohibited government workers from exploiting privileged data for individual advantage. Hochul’s mandate extends these prohibitions to encompass emerging platforms.
Hochul additionally condemned the federal administration’s handling of this matter. She asserted New York is “taking the initiative to establish standards” while federal authorities ignore the problem.
New York has previously pursued enforcement against particular platforms. Last October, the state Gaming Commission issued a cease-and-desist directive to Kalshi, alleging the organization operated an unauthorized mobile sports betting operation.
This week, the state initiated legal proceedings against both Coinbase and Gemini for purported illegal online gambling.
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