State Insider-Trading Executive Orders for Prediction Markets (CA, IL, NY, MD — and Counting)

    Four governor EOs in roughly 60 days, primary-source verified.

    Coalition state count: 4

    Last updated: 2026-04-27

    Narrative Context — Frame Shift 2026-04-26

    Frame: "States stepping in where CFTC capacity is shrinking"

    Primary source: CNN — Eva McKend / Marshall Cohen / Michael Williams (2026-04-26)
    Verbatim pending verification
    Corroborating sources:
    • Politico (2026-04-24)
      Verbatim pending verification
      Tally stale as of 2026-04-26
    • NYT (2026-04-24)
      Verbatim pending verification
    • CBS Baltimore (2026-04-27)
      Verbatim pending verification
    What this does NOT mean:
    • Does NOT mean federal preemption is settled — CFTC v NY is open litigation.
    • Does NOT mean every state will sign similar EOs — partisan distribution may cap diffusion at blue states.
    • Does NOT mean these EOs criminalize ordinary retail PM trading by non-state-employees.

    EO Comparison Table

    StateGovernorEO No.SignedScopePenalty
    MD
    Pending verification
    Wes MoorePending primary2026-04-27State employees barred from prediction market bets using nonpublic information (verbatim pending primary)Pending primary
    NY
    Kathy HochulExecutive Order No. 602026-04-22 1:47 PMAll officers and employees serving at the Governor's pleasure + appointed members of public authoritiesDismissal + sanctions + law-enforcement referral
    IL
    Pending verification
    JB PritzkerExecutive Order 2026-042026-04-21All state employees, officers, appointees, and board membersProcurement-code prohibitions applied to PM activity
    CA
    Pending verification
    Gavin NewsomPending primary2026-03Pending primary — framed as ethics-rule extensionPending primary

    Per-State Detail

    MD — Wes Moore (D)
    Neutral
    Pending verification

    Order: Pending primary
    Signed: 2026-04-27
    Effective: Pending primary
    Scope

    State employees barred from prediction market bets using nonpublic information (verbatim pending primary)

    Verbatim pending verification
    Penalty

    Pending primary

    Verbatim pending verification
    Explicit reasoning
    • Pending primary — extract from governor.maryland.gov press release or EO PDF
    CFTC-preemption posture

    Neutral
    Pending primary — read from EO text directly, never inferred

    Primary sources

    Primary source pending — row excluded from filterable counts.

    NY — Kathy Hochul (D)
    Adverse

    Order: Executive Order No. 60
    Signed: 2026-04-22 at 1:47 PM ET
    Effective: Immediate
    Scope

    All officers and employees serving at the Governor's pleasure + appointed members of public authorities

    Verbatim pending verification
    Penalty

    Dismissal + sanctions + law-enforcement referral

    Verbatim pending verification
    Explicit reasoning
    • Cites Khamenei market refunds ($2.2M Kalshi)
    • Cites Maduro Polymarket case ($400K)
    • Cites $1B Iran-war timed-bet pattern
    • Links to NY AG James Apr 21 Coinbase/Gemini suit
    • Links to Oct 2025 Kalshi NY State Gaming Commission C&D
    CFTC-preemption posture

    Adverse
    NY also defendant in CFTC v NY (Apr 25 SDNY federal-preemption suit)

    IL — JB Pritzker (D)
    Neutral
    Pending verification

    Order: Executive Order 2026-04
    Signed: 2026-04-21
    Effective: Pending primary (IL EOs typically immediate)
    Scope

    All state employees, officers, appointees, and board members

    Verbatim pending verification
    Penalty

    Procurement-code prohibitions applied to PM activity

    Verbatim pending verification
    Explicit reasoning
    • References existing IL procurement-code prohibitions
    • No sunset clause
    CFTC-preemption posture

    Neutral
    Procurement-code framing avoids direct conflict with CFTC commodity-trading authority

    Primary sources

    Primary source pending — row excluded from filterable counts.

    CA — Gavin Newsom (D)
    Neutral
    Pending verification

    Order: Pending primary
    Signed: 2026-03
    Effective: Pending primary
    Scope

    Pending primary — framed as ethics-rule extension

    Verbatim pending verification
    Penalty

    Pending primary

    Verbatim pending verification
    CFTC-preemption posture

    Neutral
    Ethics-rule extension framing

    Primary sources

    Primary source pending — row excluded from filterable counts.

    CFTC-Preemption Posture

    StatePostureReasonLink
    NY
    Adverse
    AG also defendant in CFTC v NY (Apr 25 SDNY)View
    IL
    Neutral
    Procurement-code framing avoids commodity-trading reg
    CA
    Neutral
    Ethics-rule extension framing
    MD
    Neutral
    Pending primary — read from EO text directly

    Watch List — Next-Likely Signers

    Update cadence: refreshed regularly until the fourth state signs.

    • NJ — Phil Murphy (D)

      Next-likely signer; IL/NY language is now the template

      Watch source
    • MA — Maura Healey (D)

      Next-likely signer

      Watch source
    • CT — Ned Lamont (D)

      Secondary watch — adjacent state to NY

      Watch source
    • MN — Tim Walz (D)

      Secondary watch — vocal on ethics

      Watch source
    • MI — Gretchen Whitmer (D)

      Secondary watch — MI AG already in 38-state amicus

      Watch source
    • WA — Jay Inslee (D)

      Secondary watch — added Apr 28 per research brief

      Watch source

    Frequently Asked Questions