Maryland employees banned from using insider information to make prediction market bets
Maryland Gov. Wes Moore signed an executive order that bans state employees from using government information to make wagers on prediction markets.
The move aims to maintain integrity and improve public trust in the state government, as the use of prediction markets has prompted concerns about insider trading. Prediction markets allow individuals to bet on the outcome of real-world events for financial gain.
Under the executive order, state employees are not allowed to use nonpublic government information for prediction market bets that further their private interests.
"The citizens of Maryland deserve a government where state business is conducted truthfully and honestly, free from the existence or perception of any corruption or misconduct," the governor said in the order.
Lawmakers across the U.S. raised concerns about prediction markets after a U.S. special forces soldier was charged with betting on the removal of Venezuelan leader Nicolás Maduro. He won about $409,000 from the bet, court documents show, and has since been charged with use of confidential government information, theft of nonpublic information and wire fraud.
In March, several wagers were made about a ceasefire with Iran just before the president made the announcement.
The use of prediction markets is being investigated by federal law enforcement officials for possible violations of insider trading laws.
Under Maryland's executive order, any state employee conducting unethical behavior must be reported to the Attorney General's Office and the governor's chief legal counsel for investigation. Violations of the order could also result in disciplinary action or termination for workers.
