# Arizona bans insider trading on prediction markets for government employees Governor Hobbs signs executive order prohibiting public workers from using nonpublic information in prediction markets. - **Source:** [ReadWrite](https://brifing.si/source/7a996b61-bc09-4e57-8483-78f2ad9dd914) - **Published:** 2026-07-10 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/62b0822b-5981-4751-ab7e-759f2f921939 ## New ethics regulation Arizona Governor Katie Hobbs signed an executive order banning public employees from using insider information to profit from prediction markets. Effective July 9, the order explicitly prohibits state workers from using or disclosing confidential information for financial gain. ## Penalties for violations Employees who violate the new policy may face disciplinary actions including termination. Serious cases could be referred to law enforcement. The order emphasizes that public service is a privilege that shouldn't be abused for personal benefit. ## Risks of prediction markets The executive order highlights how the growth of prediction markets has created more opportunities for public employees to misuse confidential information. Markets tied to elections, military operations and other events can facilitate ethical breaches. ## National security concerns The action follows allegations that some government employees profited millions from prediction markets using classified information about military operations in Venezuela and Iran. Such actions could potentially endanger U.S. service members. ## Similar actions in other states Arizona isn't alone in addressing this issue. New York Governor Kathy Hochul implemented a similar policy earlier this year. State officials are increasingly concerned about the ethical challenges prediction markets pose for public servants. ## Legal uncertainties persist The order comes as legal questions about prediction markets remain unresolved. A federal court recently blocked regulatory actions against prediction market operator Kalshi, highlighting the industry's complex regulatory landscape. ## Sources covering this story - https://readwrite.com/hobbs-signs-order-prediction-market-insider-trading-arizona/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._