California Gov. Gavin Newsom has banned state-appointed officials with insider information from making bets on prediction markets. This move comes as recent large payouts on Kalshi and Polymarket have raised suspicion of insider trading. The executive order added to existing ethics rules that prohibit state officials from using information unknown to the public to enrich themselves or family members. Kalsh responded by saying it already bans insider trading and warns government employees of the potential violation. The move comes amid criticism of the Trump administration's ethical failures and insider profiteering.