Newsom bans gov insiders from profiting on prediction markets.

California Governor Gavin Newsom signed a sweeping executive order on Friday, March 27, 2026, targeting insider profiteering on prediction markets by state officials and their inner circles. The order explicitly prohibits “gubernatorial appointees” from using confidential information for personal gain. Consequently, it also extends this ban to include spouses, family members, and former business partners.

“Public service should not be a get-rich-quick scheme,” Newsom said in a statement. He directly contrasted California’s stance with corruption he alleges exists at the federal level, stating, “At a time when Trump’s Washington is riddled with ethical failures and insider profiteering, California is drawing a bright line.”

The governor’s office cited specific cases that prompted this crackdown. For instance, six suspected political insiders allegedly profited from U.S. strikes on Iran using prediction platforms. Meanwhile, another trader netted $410,000 on Polymarket by betting on the arrest of former Venezuelan leader Nicolás Maduro just hours before it occurred.

This state action mirrors a growing federal legislative push. In March 2026, Texas Congressman Greg Casar and Connecticut Senator Chris Murphy introduced the “BETS OFF Act.” Simultaneously, US Representatives Adrian Smith and Nikki Budzinski proposed the similar “PREDICT Act.” Lawmakers argue such insider wagering on sensitive events like wars and elections threatens national security.

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