Illinois Governor JB Pritzker signed Executive Order 2026-04 on April 21, 2026, effective immediately, barring state employees from using nonpublic information to participate in prediction markets and event-based contracts. The order strengthens existing laws against insider trading by state officials and extends to all state agencies.
Pritzker framed the executive order as a direct response to what his office described as a rollback in federal oversight under the Trump administration. 'Prediction markets have rapidly grown into a space where people can bet on real-world events without any oversight, including events people can influence,' Pritzker said. The order prohibits wagers regardless of whether the employee or any other person ultimately profits.
Specific Cases of Suspicious Trading Cited
The governor's office cited several insider-trading concerns as justification: newly created accounts that placed large, highly accurate bets shortly before the February 2026 U.S.-Israel strikes on Iran; an anonymous trader who earned more than $400,000 betting on the capture of Venezuelan President Nicolás Maduro, with many wagers placed just hours before the U.S. operation was publicly announced; and a surge of bets on Taylor Swift's engagement shortly before the announcement. These cases highlight the growing need for regulation in prediction markets.
Federal vs. State Jurisdiction Battle
The order arrives amid active litigation. On April 2, 2026, the Commodity Futures Trading Commission (CFTC) filed lawsuits against Illinois, Arizona, and Connecticut, seeking declaratory judgments that federal law grants the commission exclusive authority to regulate event contracts. The CFTC also requested injunctions preventing those states from enforcing state gambling laws against CFTC-registered designated contract markets. Since April 2025, the Illinois Gaming Board has issued cease-and-desist letters to more than a dozen operators—including Polymarket, Kalshi, Robinhood, and Crypto.com—alleging illegal gambling.
Notably, Crypto.com recently signed a definitive agreement with NYSE-listed online casino operator High Roller Technologies to launch prediction market contracts in the U.S., highlighting the industry's push to expand amid regulatory uncertainty.
Multi-State Response
Illinois joins a growing list of states acting against prediction market insider trading. California Governor Gavin Newsom signed a similar executive order on March 27, 2026, expanding conflict-of-interest rules to gubernatorial appointees and their families. Nevada, Utah, and Tennessee have also taken state-level action, as courts across multiple states weigh the preemption question. Pritzker's order took effect immediately and applies across all Illinois state agencies, marking a significant escalation in state-level regulation of prediction markets.