Governor Tony Evers signed Executive Order #294 on Thursday, May 14, targeting the use of insider knowledge by Wisconsin state workers in prediction markets. The order prohibits executive branch employees from disclosing or leveraging any nonpublic information acquired through their positions to profit personally or benefit family members.

“State workers in Wisconsin work hard every day in dedicated service of the people of our state, often going above and beyond their job description and daily responsibilities to support Wisconsinites and our communities and meet their needs,” Evers said, as reported by WLUK. “Maintaining public trust and confidence in our state government demands and depends upon transparency, accountability, and integrity, and upholding the fundamental tenet of public service that, above all, the work must be for the benefit of the public good and not for personal greed or gain. That is a commitment we take seriously, and we must continue to do so.”

The executive order applies to more than 30,000 employees and is strictly preemptive. Wisconsin had not identified any incidents of insider trading by state officials, but rising engagement with prediction markets, including platforms such as Kalshi and Polymarket, prompted the action. These platforms allow users to wager on real-world events such as elections, government actions, sports, contests, and pop culture outcomes.

Reaction to Prediction Market Scandals

The order comes in the wake of high-profile cases nationally. For instance, a U.S. special forces soldier used classified information about the capture of former Venezuelan President Nicolás Maduro to earn more than $400,000 on an online prediction market. Similar concerns have led states like Illinois, New York, Maryland, and California to impose rules restricting state workers from participating in such markets. At the federal level, senators are now barred from trading on prediction markets after a unanimous approval in the U.S. Senate.

Prediction market contracts have surged in popularity, drawing millions of users. They operate under federal regulation from the Commodity Futures Trading Commission (CFTC), which maintains that these contracts differ from traditional sports betting. “Prediction markets and sports betting are two separate things,” CFTC Chair Michael Selig emphasized, highlighting ongoing debates about the appropriate regulatory approach.

Enforcement and Penalties

Under the executive order, any state employee violating the restrictions may face dismissal, referral to the Wisconsin Ethics Commission, or criminal investigation. The order specifically prohibits employees from allowing spouses, relatives, or other individuals to profit using insider knowledge obtained through public service.

The Wisconsin Department of Justice has also pursued legal action against platforms such as Kalshi, Robinhood, Coinbase, Polymarket, and Crypto.com, claiming these services facilitate unauthorized sports betting. Federal authorities have countered, arguing the state is interfering with federally regulated financial markets.

While general sports betting remains largely illegal in Wisconsin, 11 Native American tribes can operate under state agreements. The Ho-Chunk Nation has also taken legal action against Kalshi for allowing wagers on tribal land. A recent federal court ruling allowed the Ho-Chunk lawsuit to proceed, though it denied a temporary injunction that would halt Kalshi operations on tribal territories.