Newsom Bars Officials From Insider Trading on Prediction Markets

California Governor Gavin Newsom is barring high-ranking state officials from using inside information to wager in prediction markets.

The rise of platforms like Polymarket and Kalshi, which allow gamblers to bet on all sorts of real-world events, has raised concerns that government and corporate employees may be profiting from privileged information.

Newsom signed an executive order Friday prohibiting his appointees, their families and other associates “from using any non-public information obtained due to their public service” to bet in the prediction markets.

The order marks the first time California has pushed back against the nascent corner of the gambling ...