[ST. PAUL, MN] – Governor Tim Walz today signed an executive order to prevent state employees from using nonpublic information for insider trading on prediction markets, following a federal judge’spreliminary injunction blocking Minnesota from implementing a law banning prediction markets. The legislation passed with bipartisan support in both the House and Senate and was scheduled to go into law on August 1, making Minnesota the first in the nation to ban these platforms.

“State employees serve the public and shouldn’t make money off insider information,” said Governor Walz. “It is clear that the Trump administration and companies like Kalshi are more interested in lining their pockets than protecting public trust and keeping people safe. Regardless of Trump’s grift, I am taking executive action to reinforce the strong ethical standards we have in Minnesota.”

The executive order prohibits employees of state agencies from using nonpublic or confidential information obtained from their employment to participate in prediction markets. The restriction applies whether an employee realizes a profit or incurs a loss from a transaction. Employees who violate the order may be subject to discipline up to and including discharge. 

Online prediction markets have surged in recent years, allowing people to place wagers on the outcome of future events such as elections, sporting events, and world affairs. An individual's position in government should not give them an unfair financial advantage. The growth of these platforms can erode public trust by creating opportunities for elected officials and government employeesto profit from nonpublic information, while also fueling gambling addiction and raising public safety and national security concerns.