Politics

Ban on City Employees From Using Private Info in Prediction Markets Advances

Chicago employees would be banned from using private information to place bets on prediction markets like Polymarket and Kalshi under a measure that won the endorsement of a key City Council committee Tuesday.

The City Council’s Ethics and Government Oversight Committee voted unanimously to advance a measure crafted by Ald. Timmy Knudsen (43rd Ward) that would amend the city’s Governmental Ethics Ordinance to ban employees from using insider information to bet on prediction markets.

“Confidential information should not become an investment opportunity,” Knudsen said.

The measure is set for a final vote by the full City Council on July 15.

Gov. JB Pritzker signed an executive order in April to ban state employees from using information not available to the public to place bets using platforms that allow users to bet on real world events like the outcome of elections and decisions by public agencies.

City ordinance already prohibits current and former city employees from using confidential information obtained through their positions for personal gain, but Knudsen said the city should act quickly to “address risks created by rapidly growing digital betting markets.”

Knudsen said everyone should be alarmed that traders appeared to act on unusually precise information ahead of major developments, including the announcement of U.S. military actions and decisions by the Trump administration.

Contact Heather Cherone: @HeatherCherone | (773) 569-1863 | [email protected]

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