Lynnae is a journalist covering the intersection of technology, culture, and gambling. She has more than five years of experience as a writer and editor, with bylines at SlashGear and MakeUseOf. On the iGaming side,...
Read Full BioNew York lawmakers have introduced a bill that would bar public officials from using information acquired through their official duties to place bets on online sportsbooks or trade on prediction markets. The move is the latest attempt to address concerns about insider trading tied to event-based contracts listed on those platforms.
Democratic Assemblymember Phil Steck introduced Assembly Bill A09635 on January 21, and it has been referred to the Assembly’s Committee on Governmental Operations. As of this writing, it does not have bipartisan sponsorship. As written, the bill would amend New York’s Public Officers Law to prohibit state agency employees, members of the legislature, and legislative staff from using information obtained through their official duties to participate in prediction markets or sportsbooks.
Instead of creating a new gambling offense, the bill treats the use of nonpublic information obtained by public officials in their official capacity as a misuse of their authority under state law. The bill leaves no doubt about which platforms it considers off-limits for state employees, listing several by name, including Polymarket, Kalshi, PredictIt, Robinhood, FanDuel, and DraftKings. It also makes clear that the restriction is not limited to the platforms listed in the bill but applies to prediction markets and wagering platforms as a whole.
If lawmakers vote in favor of the bill and the governor signs it, the measure would go into effect 90 days after becoming law.
New York Bill Part of Broader Insider Trading Push
The proposed New York bill comes as prediction markets are facing increased scrutiny at both state and federal levels over concerns that public officials with access to nonpublic information may have an unfair advantage when trading on these platforms.
At the beginning of January, Rep. Ritchie Torres (D-N.Y.) introduced legislation that would make it illegal for federal officials to make trades on prediction market contracts tied to government policy or political outcomes when they possess, or could reasonably obtain, material nonpublic information. The proposal, called the Public Integrity in Financial Prediction Markets Act of 2026, would apply the same insider trading principles traditionally associated with securities to event-based contracts.
Torres’ proposal came after a series of suspicious trades were placed on Polymarket in the hours leading up to the capture of Venezuelan President Nicolás Maduro by U.S. Special Operations Forces on January 3. In that case, newly created wallets placed large bets on Maduro’s removal from office. Not long after these bets were placed, President Trump confirmed Maduro’s detention, generating six-figure payouts and prompting speculation on social media that insiders with knowledge of the operation were behind the fortuitous trade.
CFTC-regulated prediction markets already ban insider trading, and the Maduro trade was placed on Polymarket’s non-U.S. platform. However, that hasn’t quelled lawmakers or the public’s concerns about how effective these rules are or how they’re enforced in practice.
