Josh Stein, the Governor of North Carolina, spoke at the latest North Carolina Strong Update to address the threat posed by prediction markets in the state.
Starting off, Stein signed Executive Order No. 37, titled: “Establishing Guardrails Regarding State Employee Participation In Prediction Markets”. This prohibits state employees from using information they have obtained through their work to bet on prediction market contracts.
It also explains that state employees cannot let bets influence their job responsibilities or assist others in similar endeavors.
There have been several incidents in which people have been caught insider trading on prediction market platforms.
Stein said: “When people use nonpublic information gained at work to get an unfair advantage, it erodes public trust. This executive order guarantees that our state government will lead with integrity."
The Executive Order serves as an extension to the North Carolina State Ethics Act, which prevents public servants from using non-public information for personal financial interest.
In the Order itself, Stein states: “Americans are increasingly worried about online prediction markets and the failure of such platforms to prevent people with insider information from manipulating or profiting from them.
“Public trust and confidence in government and other public institutions is eroded when state officials and employees use nonpublic information for pecuniary gain through participation in online prediction markets.”
The American Gaming Association (AGA) continues to challenge the Commodity Futures Trading Commission (CFTC) on the legality of prediction markets.
This will apply to all officers, employees, interns, and appointees serving in the Executive Branch, whether full-time, part-time, temporary, or unpaid
