New York Workers Banned From Gambling on Prediction Markets

A law that has taken effect immediately bans New York workers from making bets that are a sure win.

You may have already heard of prediction markets. These fairly new platforms take gambling to the next level. Instead of just sports games, these websites let people wager money on real-world events. You can place bets on anything from election results to global conflicts to what color dress Taylor Swift will wear to the Grammys.

There have been accusations that government officials have been using their inside knowledge of world events to wager huge bets on events only they knew were going to happen.

In January, an anonymous user won over $400,000 on a bet that Nicolas Maduro would soon be out of office. Since then, over $1 billion has been won by suspiciously timed bets on specifics about the war in Iran, including the location and timing of military strikes and the status of the Strait of Hormuz.

Governor Kathy Hochul has signed an executive order that bans state employees from using insider information to gamble on these prediction markets. Hochul insists that “Getting rich by betting on inside information is corruption, plain and simple,”

How New York's Gambling Ban Actually Works

Under the new rule, state employees can’t use confidential information from their jobs to place bets or make money on these platforms. They also can’t tip off anyone else to help them profit either.

It seems like common sense, but many believe this corruption is already happening in the highest levels of our government. New York's law is aimed at making sure that doesn't take place here at home.

The policy takes effect immediately.