Prohibits certain employees with the state from using nonpublic information to gain advantage on prediction markets; establishes penalties for using nonpublic information on prediction markets.
STATE OF NEW YORK
________________________________________________________________________
11660
IN ASSEMBLY
July 29, 2026
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Powers) --
read once and referred to the Committee on Governmental Operations
AN ACT to amend the public officers law, in relation to prohibiting
certain employees of the state from using nonpublic information in
prediction markets
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The public officers law is amended by adding a new section
2 74-b to read as follows:
3 § 74-b. Prediction markets prohibited. 1. For the purposes of this
4 section, the following terms shall have the following meanings:
5 (a) "New York state legislature" means the New York state assembly and
6 New York state senate.
7 (b) "Prediction market" means an exchange-traded platform or service
8 that is not licensed or permitted by the New York state gaming commis-
9 sion used by participants to buy and sell contracts contingent on future
10 events, such as elections, sporting events, actions or speech of indi-
11 viduals, and economic indicators. For the purposes of this section a
12 platform or service will not be considered a "prediction market" solely
13 because the platform or service is used to trade future contracts or
14 options to purchase or sell securities, commodities, or other goods or
15 services.
16 (c) "Public authority" means a public authority or public benefit
17 corporation created by or existing under any state law, at least one of
18 whose members is appointed by the governor, including any subsidiaries
19 of such public authority or public benefit corporation, other than an
20 interstate or international authority or public benefit corporation.
21 (d) "State agency" means any state agency, department, office, board,
22 commission or other instrumentality of the state, other than a public
23 authority.
24 2. No member of the New York state legislature or their respective
25 staff, no officer or employee of a state agency who serves at the pleas-
26 ure of the governor or their appointing authority, and no member of a
27 public authority appointed by the governor, shall use any nonpublic
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15656-02-6
A. 11660 2
1 information obtained in the course of such person's official duties to
2 seek profit or avoid loss from participation in a prediction market or
3 similar service or assist any other person in seeking profit or avoiding
4 loss from participation in a prediction market or similar service.
5 3. Any officer or employee of a state agency who was found to have
6 violated the provisions of this section shall be subject to a fine not
7 to exceed five thousand dollars, for a first offense. Upon a second
8 offense, such officer or employee of a state agency shall be subject to
9 a fine not to exceed ten thousand dollars. Upon a third offense, such
10 officer or employee of a state agency shall be removed from office or
11 employment in the manner provided by law.
12 § 2. This act shall take effect immediately.
