Pritzker bars Illinois employees from insider prediction bets

Governor J.B. Pritzker signed Executive Order 2026-04 on April 21, 2026, prohibiting Illinois state employees from using nonpublic information to place bets on prediction markets and event-based contracts. The order took effect immediately and applies to all state agencies. The restriction applies whether or not the employee or any other person ultimately profits.

The executive order reinforces existing state rules that bar current and former officials from using confidential information obtained through public office for personal gain. A statement from the governor’s office described the action as a response to the rapid growth of event-based betting and reduced federal oversight. The statement read: “Prediction markets have rapidly grown into a space where people can bet on real-world events without any oversight, including events people can influence.”

The governor’s office cited several examples to justify the ban. It said newly created accounts placed large, highly accurate bets shortly before February 2026 U.S.-Israel strikes on Iran. The office also described an anonymous trader who reportedly earned more than $400,000 betting on the capture of Venezuelan President Nicolás Maduro, with many wagers placed hours before a U.S. operation was publicly announced, and a surge of wagers on Taylor Swift’s engagement shortly before that announcement.

The order was issued amid litigation over who can regulate prediction markets. On April 2 the Commodity Futures Trading Commission filed lawsuits in federal court against Illinois, Arizona and Connecticut seeking declarations that federal law gives the CFTC exclusive authority to regulate event contracts and requesting injunctions to block state enforcement against CFTC-registered markets.

Since April 2025 the Illinois Gaming Board has sent cease-and-desist letters to more than a dozen prediction market operators, naming platforms including Polymarket, Kalshi, Robinhood and Crypto.com and alleging they offered illegal gambling under state law. California issued a similar order on March 27 that expanded conflict-of-interest rules for gubernatorial appointees and related parties. Nevada, Utah and Tennessee have also taken actions, and courts in multiple states are weighing whether federal law preempts state enforcement.

Pritzker’s executive order applies statewide and aims to strengthen protections against insider wagering on platforms such as Kalshi, Polymarket and Crypto.com while federal litigation proceeds.