Maryland Sets Rules on Prediction Markets for State Officials

Maryland has stepped into the prediction market debate, but instead of targeting the platforms themselves, it’s going after something else on how they’re used.

Governor Wes Moore has signed a new executive order aimed at state employees, making it clear that using insider knowledge on prediction markets is off limits. It’s a move that doesn’t try to define the industry, but does draw a hard line on behaviour.

Not About the Platforms, About the People

The order is focused on one thing and that is to gain trust. State employees, contractors, and officials are now explicitly banned from using nonpublic government information to place positions on prediction markets or benefit financially in any way.

That includes everything from political appointees to agency staff, and even applies to the governor himself. While similar rules already existed in general ethics policy, this is the first time prediction markets have been called out directly.

Why Now

Timing matters here. Prediction markets have grown quickly, and with that growth has come a new concern and that is how to access to information.

Recent investigations at the federal level have raised questions about whether individuals with good knowledge, particularly around military or geopolitical events, have used that information to profit on these platforms. Maryland’s response is simple just remove that possibility before it becomes a problem at the state level.

A Straightforward Rule

The language in the order is direct. State employees cannot use information gained through their roles to make financial decisions on prediction markets or to benefit themselves or others.

There’s no grey area here, and no flexibility in enforcement. Any suspected violations must be reported immediately, and penalties can include disciplinary action or termination.

Avoiding the Bigger Debate

What’s interesting is what the order doesn’t do. Maryland isn’t trying to classify prediction markets as gambling or financial products. It’s not banning them, regulating them, or limiting access for the public.

Instead, the state is focusing inward, on ethics, conduct, and the handling of sensitive information. It’s a more controlled approach, especially at a time when other states are pushing for wider regulation or outright restrictions.

A Signal to Other States

Maryland’s move adds to a growing list of actions across the U.S., where states are trying to figure out how to deal with prediction markets. Some are targeting operators and others are passing legislation.

Maryland has taken a different route, one that sidesteps the classification debate entirely and focuses on risk.

What It Means

For now, this doesn’t change how prediction markets operate in Maryland. It does send a clear message that if you’re in a position of trust, you don’t get to use that position to gain an edge.

As the space continues to evolve, expect more states to take their own approach, whether that’s through regulation, enforcement, or internal policy like this.

Stay tuned to UMG Gaming for more updates on regulation, market movement, and the evolving U.S. gaming landscape.