Illinois Gov. JB Pritzker followed in the footsteps of California and signed an executive order prohibiting state workers from betting on predicting platforms such as Polymarket, Kalshi, Robinhood, and Crypto.com using confidential information obtained in their jobs.
The veto also affects state employees, officers, appointees, and board members from using confidential information obtained through their government roles to trade in event-based contracts and limits the use of AI.
It also bars them from sharing that information so others can place bets or benefit in other ways.
"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 in a statement. "Illinois is stepping up to ensure those who are serving the public, not their own personal financial gain."
The efforts to regulate online betting also expanded to the federal government last week, when federal authorities arrested and charged a U.S. special forces soldier who is accused of using classified information about the raid that removed Venezuela's Nicolás Maduro from office to make prediction market bets.
In a news release announcing the indictment, it was revealed that Gannon Ken Van Dyke "bet a total of approximately $33,034" on the Maduro operation on the prediction market platform Polymarket, making more than $409,000.
A wide effort to regulate prediction markets
Prediction markets allow users to wager on real-world outcomes, from elections and sports to government actions. Illinois officials said the new order strengthens existing ethics laws at a time when well-timed bets on political and military developments have raised concerns about insider information. WTTW reported that the White House warned staff this month against using private information to trade on prediction markets after reports of profitable bets tied to U.S.-Iran developments.
The move also comes during a wider fight over who gets to regulate the industry. The Illinois Gaming Board has sent cease-and-desist letters to more than a dozen operators arguing they offered illegal gambling under state law. The Commodity Futures Trading Commission sued Illinois this month, arguing prediction markets are federally regulated commodities markets, not gambling platforms subject to state control.
Illinois is not alone. California Gov. Gavin Newsom issued a similar order in March covering gubernatorial appointees, while New York Gov. Kathy Hochul issued an order this week prohibiting state employees from using confidential information to profit from prediction markets. "Getting rich by betting on inside information is corruption, plain and simple," Hochul said.
AI use by state workers in Illinois
Regarding AI, state employees face no blanket ban but now operate under significant guardrails, according to policy records recently obtained by the Chicago Tribune.
The policy says AI systems may not discriminate, violate privacy, mislead users, manipulate public opinion, or make decisions autonomously without oversight. It requires a "human in the loop" so final decisions are made by people, not machines.
Agencies also must disclose when users are interacting with an AI system and explain the role AI plays when it supports decision-making. Systems that use protected, sensitive or confidential information require written authorization from an agency head and notice to DoIT.
The Illinois rules reflect a broader national rush to regulate AI. The National Conference of State Legislatures reported that all 50 states, Puerto Rico, the Virgin Islands, and Washington, D.C., introduced AI-related legislation in 2025, with 38 states adopting or enacting about 100 measures.
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