California bans officials from using inside knowledge to bet on prediction markets

Group 1 - California Governor Gavin Newsom issued an executive order prohibiting state officials from using insider knowledge to bet on prediction markets such as Polymarket and Kalshi [1][2][3] - The order was prompted by concerns over potential misuse of inside information, highlighted by a trader who profited over $400,000 from betting on the ousting of Venezuelan President Nicolas Maduro [2] - All gubernatorial appointees are now banned from profiting from non-public information in predictive markets, including aiding family or former business partners [3] Group 2 - Kalshi emphasized that insider trading violates their rules and that government employees should be aware that trading on federally regulated markets using non-public information is illegal [4]