Story perspectives

California Bans Officials from Profiting on Prediction Markets

3/28/2026

Summary

Story summary

California Governor Gavin Newsom signed an executive order on March 27, 2026, prohibiting state officials from profiting on prediction markets such as Polymarket and Kalshi.
The measure seeks to curb unethical profits from prediction-market activity.
Newsom said public service should not be a path to personal gain.
The ban also covers family members and business partners of appointed officials.

History

Historical Context

The U.S. Supreme Court's 2016 ruling on daily fantasy sports marked a pivotal shift in gambling regulations, paving the way for prediction markets like Kalshi and Polymarket. In 2026, California Governor Gavin Newsom's executive order aimed to prevent state officials from profiting off these markets, reflecting ongoing ethical concerns and the need for clearer boundaries in public service amid the sector's rapid growth, which saw volumes exceed $13 billion by 2025.

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Story summary

California Governor Gavin Newsom signed an executive order on March 27, 2026, prohibiting state officials from profiting on prediction markets such as Polymarket and Kalshi.
The measure seeks to curb unethical profits from prediction-market activity.
Newsom said public service should not be a path to personal gain.
The ban also covers family members and business partners of appointed officials.

1 / 2