Prediction Markets: Wagering Contracts Tied To Real World Events Benefits Insiders

A quiet executive order from Governor Kathy Hochul has put a spotlight on something most New Yorkers have probably never heard of: prediction markets. The order does not ban them. What it does is draw a clear line around state government employees and what they are allowed to do with information they learn on the job.

To understand why that matters, it helps to understand what prediction markets are, and why they have suddenly become one of the most contentious regulatory fights in the country.