Governor Tim Walz signed an executive order today that bars Minnesota state employees from using confidential or nonpublic government information to participate in prediction markets. The move is intended to reinforce ethical standards and maintain public confidence in state institutions.
The order applies to all state agency personnel, including the governor, lieutenant governor, and agency commissioners. It prohibits the use of nonpublic data or confidential information obtained through official duties to benefit oneself or another party in any prediction market, regardless of whether a profit is made.
Prediction markets allow participants to wager on future events such as elections, sporting contests, government actions, legal proceedings, and economic indicators. The governor highlighted concerns that such platforms are especially vulnerable to insider trading when accessed by individuals with privileged information.
Employees who violate the restriction may face disciplinary action, including dismissal, and could also be subject to criminal penalties under existing state law. The governor urged other branches of state government to review their own ethics policies and consider similar safeguards.
The order will take effect 15 days after publication in the State Register and remains in force until rescinded or until it expires under state law. It represents a proactive step to prevent the misuse of confidential information in the growing arena of online prediction markets.
The announcement follows a separate legal dispute over Minnesota’s broader attempt to regulate prediction markets. A federal judge issued a preliminary injunction blocking enforcement of a new law scheduled to take effect on August 1 while challenges from market operators and federal regulators proceed.
The judge indicated that plaintiffs had a strong likelihood of success on claims that the Commodity Exchange Act preempts the state’s statute. The case remains ongoing, with the court noting that the injunction is provisional.
In his statement, the governor criticized market operators for prioritizing profit over public trust and emphasized the importance of ethical governance. He reaffirmed his commitment to protecting the integrity of government institutions.
