California Governor Gavin Newsom ordered a ban on bets on prediction market platforms that use insider information, The Block reported on March 27 local time.
The step is drawing attention as cases increase of large bets made just before major economic decisions and U.S. military operations, alongside a push for regulation at the federal level.
Newsom wrote on X (Twitter), "Public office is not a way to get rich," and added, "While President Donald Trump amassed wealth while in office, California will fight corruption."
At the federal level, the PREDICT bill is being advanced, with discussions on banning members of Congress, federal officials and their families from trading event contracts tied to political and policy decisions.
It also includes provisions to forfeit profits and impose a 10 percent fine for violations. Data show Kalshi and Polymarket combined monthly trading volume has surpassed $20 billion, setting new records for 7 straight months.
Chi-gyu Hwang (황치규)
delight@d-today.co.kr