Last Updated on March 27, 2026 by The HD Post Staff
CALIFORNIA – Gov. Gavin Newsom on March 27 announced an expanded ban on insider betting by California political appointees to include prediction markets.
These platforms allow users to wager on the outcomes of real-world events, including government actions and economic developments.
The order follows scrutiny over reports of well-timed trading activity ahead of major Trump administration actions.
On Monday, a surge in oil futures trading occurred about 15 minutes before President Donald Trump announced a delay in planned strikes on Iranian energy targets, according to The Daily Beast.
The trades were valued at about $580 million. Oil prices declined sharply after Trump’s post, while stock futures increased.
Newsom also cited reports of trades placed ahead of key federal decisions — from military operations to tariff actions — raising concerns about whether individuals with access to nonpublic information could profit.
White House denies claims
The White House denied the claims, with spokesperson Kush Desai calling suggestions that officials profited from nonpublic information “baseless and irresponsible.”
Newsom’s executive order takes effect immediately and applies broadly to prediction market platforms such as Polymarket and Kalshi.
The ban also prohibits appointees from using insider information to benefit others, including family members or business partners.
It does not ban participation outright, but restricts the use of insider knowledge tied to official duties.
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