Arizona governor bans state workers from insider trading on prediction markets

(PRESS RELEASE) -- Today, Governor Katie Hobbs signed an executive order prohibiting Arizona state executive branch employees from using nonpublic government information to profit on prediction markets. By designating nonpublic information as confidential for this purpose, the order ensures state workers remain focused on serving Arizonans rather than personal enrichment.

"Arizonans deserve a state government that works for them, not one where insiders exploit public service for their own gain," said Governor Katie Hobbs. "I’m proud to set clear, commonsense ethical standards on prediction markets to hold our government accountable. Public service is a privilege, and we will not tolerate anybody abusing that privilege to line their own pockets."

Recent media reports and federal indictments have revealed that government employees outside of Arizona have used nonpublic information to win millions of dollars wagering on government actions, including international military operations.

The executive order strictly forbids all executive branch employees from disclosing or using any nonpublic information to profit, avoid financial loss, or assist others in profiting from prediction markets. Any violation of the order may result in dismissal, other sanctions, and referral to law enforcement. To further safeguard operations, the order officially designates all nonpublic information obtained during public service that could be used for wagers as confidential.

In the Executive Order, Governor Hobbs also encourages other statewide elected officials, independent boards and commissions, and the judicial and legislative branches to adopt comparable policies for their employees.