Stein order restricts state employees from using inside information in prediction markets
RALEIGH — Gov. Josh Stein has signed an executive order restricting state employees from participating in prediction markets when the activity involves nonpublic information, state resources or matters connected to their official duties.
Executive Order No. 37 was announced Wednesday as part of a broader update from the governor’s office on public safety, military affairs and government ethics. The order prohibits state employees from using nonpublic information gained through their jobs to participate in prediction markets for personal financial benefit or to help someone else participate. It also bars employees from allowing bets to influence their official responsibilities, participating in prediction market transactions substantially related to their work or agency, or using state resources to participate in those markets.
Prediction markets allow participants to buy and sell contracts tied to the outcome of future events. The governor’s office said the order was prompted by a sharp increase in trading volume nationwide, estimating that prediction market trading reached $63.5 billion in 2025, a 300% increase from 2024.
Stein said the order is intended to preserve public trust in state government.
“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 responsibilities for personal financial interest. Violations of the order may result in disciplinary action under state employment law and may be referred to the State Ethics Commission or law enforcement.
The order comes as prediction markets have drawn increased attention from regulators, investors and policymakers. In state government, the issue raises questions about whether public employees could have access to information affecting contracts tied to elections, economic data, emergency response, agency actions or other public decisions.
The order applies to state employees, but the governor’s announcement did not identify specific incidents in North Carolina that led to the action.
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.
