On Wednesday, Gov. Josh Stein signed an executive order that prohibits state employees from using inside information they obtain at work to make bets on prediction markets like Kalshi or Polymarket.
According to Investopedia, a prediction market is where individuals trade contracts based on the outcomes of unknown future events such as election results or sports competitions.
The governor said an estimated $63.5 billion was traded in prediction markets in 2025, a 300% increase from the prior year. Stein invited Secretary of State Elaine Marshall to sign the executive order as well.
“This executive order is a natural extension of the North Carolina State Ethics Act which prohibits public servants and legislative employees from using or disclosing nonpublic information gained through their official responsibilities toward their own personal financial interest,” he said at a press conference. “To be clear, I do not have any reason to believe that any state employees are currently making these unethical bets.”
But, he said, the action was taken in light of a Fort Bragg soldier accused of using insider information to make a wager on a prediction market.
Gannon Ken Van Dyke, a master sergeant assigned to the US Army Special Operations command at Fort Bragg who made more than $400,000 trading on Polymarket on the basis of classified information regarding the timing of a US military operation to capture former Venezuela President Nicolas Maduro in Venezuela, according to the US Department of Justice.
Stein, a Democrat, also said it was due to growing concern about the issue across the country, and the possibility of it becoming an issue in the state.
“We put in this executive order on ensuring that public employees do not exploit nonpublic information for their own personal gain,” he said. “There is story after story after story of insane bets of millions of dollars immediately before an action takes place, and then the action takes place and it’s corrupting a people’s faith in government. What I know is that the people who work in North Carolina state government do so with incredible commitment, incredible passion for service to ensure that people are getting what they should out of their government… I want the people of North Carolina to have that confidence and knowing that when folks take action in North Carolina, they’re doing it because it helps them, not because of somebody’s personal financial self-dealing.”
North Carolina joins the growing list of states, including New York, Maryland, Illinois, and California, banning state employees from prediction market betting.
In addition, House Bill 1171, Prohibit Gambling in Prediction Markets, was introduced on April 30. It went to the House Rules Committee on May 4.
Prediction markets were also used in the 2024 presidential election, with millions of dollars legally wagered on the presidential race through platforms such as Kalshi and Robinhood.