Illinois Governor Bars State Employees From Insider Bets on Prediction Markets

Key Takeaways:

• Illinois EO 2026-04 bars authorities employees from insider wagers connected Kalshi, Polymarket, Crypto.com.
• Illinois Gaming Board has issued cease-and-desists to 12+ prediction market operators since April 2025.
• CFTC sued Illinois connected April 2 to asseverate exclusive national jurisdiction implicit lawsuit contracts.

A widening authorities effect to national preemption

Illinois instrumentality already bars existent and erstwhile authorities officials from knowingly utilizing confidential accusation obtained by virtuousness of their bureau for idiosyncratic gain, but Pritzker’s bureau said the caller bid strengthens those protections successful effect to emerging risks tied to the accelerated maturation of event-based gambling. Pritzker signed Executive Order 2026-04 connected Tuesday, April 21, effectual immediately: its prohibitions use careless of whether the authorities worker oregon immoderate different idiosyncratic yet profits.

Pritzker framed the enforcement bid arsenic a nonstop effect to what his bureau described arsenic a rollback successful national oversight nether the Trump administration. “ Prediction markets person rapidly grown into a abstraction wherever radical tin stake connected real-world events without immoderate oversight, including events radical tin influence,” Pritzker said successful the statement.

The governor’s bureau cited respective insider-trading concerns arsenic justification, including recently created accounts that placed large, highly close bets soon earlier the February 2026 U.S.-Israel strikes connected Iran; an anonymous trader who earned much than $400,000 betting connected the seizure of Venezuelan President Nicolás Maduro, with galore wagers placed conscionable hours earlier the U.S. cognition was publically announced; and a surge of bets connected Taylor Swift’s engagement soon earlier the announcement was made public.

The bid arrives amid progressive litigation. On April 2, the CFTC filed lawsuits successful national tribunal against Illinois, Arizona, and Connecticut, seeking declaratory judgments that national instrumentality grants the committee exclusive authorization to modulate lawsuit contracts, and requesting injunctions preventing those states from enforcing authorities gambling laws against CFTC-registered designated declaration markets. Since April 2025, the Illinois Gaming Board has issued cease-and-desist letters to much than a twelve operators – including Polymarket, Kalshi, Robinhood, and Crypto.com – alleging they were offering amerciable gambling successful usurpation of authorities law.

Illinois joins a increasing database of states that person moved against prediction market insider trading. California Governor Gavin Newsom signed a similar enforcement order connected March 27, expanding California’s existing conflict-of-interest rules to explicitly prohibit gubernatorial appointees, arsenic good arsenic their spouses, household members, and erstwhile concern partners, from utilizing confidential accusation to nett from prediction markets. Nevada, Utah, and Tennessee person besides taken state-level action, arsenic courts crossed aggregate states measurement the preemption question.

Pritzker’s enforcement bid took effect instantly and applies crossed each Illinois authorities agencies.