Stein bars state employees from using nonpublic information in prediction markets
RALEIGH — Gov. Josh Stein signed an executive order Wednesday barring state employees from using nonpublic information gained through their work to participate in prediction markets for personal financial benefit.
The order was announced during Stein’s NC Strong Update, where the governor also addressed law enforcement, correctional officer staffing and military issues. Stein’s office said the prediction markets order was issued in response to a rapid increase in trading volume nationwide.
Prediction markets allow participants to trade contracts tied to the outcome of future events. Stein’s office said prediction market trading was estimated at $63.5 billion in 2025, a 300% increase from 2024.
The executive order prohibits state employees from using nonpublic information gained at work to participate in prediction markets for their own benefit or to assist someone else. It also prohibits employees from allowing their bets to influence their job responsibilities, participating in prediction market transactions substantially related to their work or agency, and using state resources to participate in prediction markets.
“When people use nonpublic information gained at work to get an unfair advantage, it erodes public trust,” Stein said in the announcement. “This executive order guarantees that our state government will lead with integrity.”
The governor’s office described the order as an extension of the North Carolina State Ethics Act, which prohibits public servants from using or disclosing nonpublic information obtained through official duties for personal financial interest. Violations of the executive order may result in disciplinary action and could be referred to the State Ethics Commission or law enforcement, according to Stein’s office.
The order places North Carolina in a growing policy debate over how government ethics rules apply to newer financial products and online markets.
Traditional conflict-of-interest rules already restrict public officials and employees from using government information for private gain. The executive order applies that principle to prediction markets, where inside knowledge about pending state actions, agency decisions, public safety issues or regulatory matters could create financial incentives for employees with access to nonpublic information.
The order does not ban all state employees from all prediction market activity. Instead, it targets activity connected to nonpublic work information, state resources or matters substantially related to an employee’s official responsibilities.
The practical effect will depend on how agencies communicate the rules, monitor compliance and handle potential violations. The order gives the administration a policy framework, but future disputes could test where the line falls between a private transaction and one connected closely enough to state work to raise ethics concerns.
Editor’s note: This article was drafted with the assistance of artificial intelligence and was reviewed and fact-checked by a member of the NC Political News editorial team before publication.
