Arizona Governor Katie Hobbs has signed an executive order prohibiting executive branch employees from using nonpublic government information to profit through prediction markets, creating new ethics rules that also classify certain information as confidential when it could be be used to place wagers.

The order, signed July 9 as Executive Order 2026-02, prohibits state executive branch employees from using or disclosing nonpublic information obtained through their public service to earn money, avoid financial losses, or help another person or organization profit through participation in prediction markets. Employees who violate the policy may face dismissal or other disciplinary action and could also be referred to law enforcement, according to the executive order.

Governor Hobbs announced the order Thursday (July 9), saying it is intended to strengthen ethical standards as prediction markets continue to expand in popularity and scope.

“Arizonans deserve a state government that works for them, not one where insiders exploit public service for their own gain,” said Governor Katie Hobbs in an accompanying statement. 

“I’m proud to set clear, commonsense ethical standards on prediction markets to hold our government accountable. Public service is a privilege, and we will not tolerate anybody abusing that privilege to line their own pockets.”

The executive order points to existing Arizona law barring public officials and employees from using or disclosing confidential, nonpublic information. It says the proliferation of prediction markets—which allow users to trade contra...