- A new executive order was signed by Governor Josh Stein in North Carolina that prevents employees of the state’s executive branch from using insider information to profit at online prediction markets.
- Executive Order 37 was established because of an incident at Fort Bragg that saw an officer use nonpublic information to profit from Venezuelan President Nicolas Maduro’s capture.
RALEIGH, N.C. – North Carolina Governor Josh Stein signed Executive Order 37 on Wednesday, which prevents state employees from using nonpublic information to purchase any contracts at online prediction markets related to their work.
In addition to banning state employees from using nonpublic information to influence prediction markets and legal sports betting markets, Executive Order 37 prohibits state employees from:
- Using their knowledge of nonpublic information to help others who are using legal online prediction markets.
- Using state funds to make trades or facilitate trades on any prediction market platform.
The new law only applies to the Executive Branch, but it does encourage the leaders of the state’s judicial branch, general assembly, university system, and Council of State Agencies to adopt similar rules for participation at prediction markets and online betting sites in North Carolina.
Why Was Executive Order 37 Established?
Governor Stein signed Executive Order 37 because a soldier at Fort Bragg was accused of both helping himself and others close to him capitalize on the capture of Venezuelan President Nicolas Maduro in January. The incident exposed how government employees and officials using nonpublic knowledge for their own financial well-being could negatively harm the public.
The executive order serves as an extension of the North Carolina State Ethics Act and prohibits employees from using nonpublic information gained through their official duties for personal financial benefit. It also bars employees from letting prediction market positions influence their job responsibilities, participating in contracts directly related to their work, or using state resources to access prediction markets.
Other Details To Know About Executive Order 37
- The Executive Order does not have an end date. It will remain in effect unless it is repealed, replaced, or rescinded.
- Violations can result in disciplinary action and may be referred to the State Ethics Commission and/or law enforcement. :contentReference[oaicite:2]{index=2}
- Governor Josh Stein signed the executive order alongside Secretary of State Elaine Marshall.
