Stein executive order bans state employees from using inside info on prediction markets

RALEIGH — North Carolina Gov. Josh Stein signed an executive order Wednesday that bans state employees from using information that they’ve gained at work to place wagers on prediction markets, such as Kalshi or Polymarket.

“This executive order is a natural extension of the North Carolina State Ethics Act, which prohibits public servants and legislative employees from using or disclosing nonpublic information gained through their official responsibilities toward their own personal financial interest,” Stein said Wednesday. “To be clear, I do not have any reason to believe that any state employees are currently making these unethical bets.”

On Kalshi, for example, bettors can wager on which state will be CNBC’s No. 1 state for business this year. North Carolina and Virginia are the favorites. North Carolina was No. 1 last year. Bettors can also wager on voter turnout in congressional races in November or when season five of "Outer Banks" will be released.

Stein said $63.5 billion was traded on prediction markets in 2025. 

“When people use nonpublic information they have gained at work for unfair gain, we run into trouble,” Stein said. “And when the public sees outlandish bets being placed on events that involve government decision making, like military actions, vaccine approvals or something even as outlandish as UFO sightings immediately before the decision is announced, it is wrong. It certainly depresses people’s confidence that the decisions are being made with their interests in mind as opposed to the bettors.”

The U.S. Senate recently banned members and staff from betting in prediction markets.

In April, a Fort Bragg soldier was accused of using insider information to help him win a bet related to the capture of Venezuelan President Nicolás Maduro. Gannon Ken Van Dyke, a master sergeant assigned to the U.S. Army Special Operations command at Fort Bragg, was part of the operation to capture Maduro, which took place in January. He faces federal charges of unlawful use of confidential government information for personal gain.

Nine connected accounts on Polymarkets have won $2.4 million on Iran war bets, CBS reported. More than $1 billion has been traded on military decisions and outcomes.

Sports betting is legal in North Carolina. It is regulated by the state’s lottery commission and operators pay state taxes. Prediction markets are regulated federally and don’t pay state taxes. Prediction markets offer sports betting in states where it isn’t legal.