Pa. election results, Shapiro’s speeches, and state laws are all prediction market bets

The markets have also sparked a legal brawl between 20 states and the federal government over who has the authority to regulate and tax them.

Official response and confirmed impact

States could be losing out on more than $2 billion in annual tax revenue from winnings overall, according to the Tax Foundation, a nonpartisan think tank.

Democratic governors in at least seven states have expanded their ethics regulations via executive orders to specifically ban state employees from using insider information on prediction markets.

Many pitched the orders as additions to existing ethics law that will provide an extra layer of protection against public corruption.

Pennsylvania isn’t one of those states; it has no specific ban on insider prediction market betting for public employees.

Likewise, Gov. Josh Shapiro’s office and both chambers of the General Assembly lack their own policies on the issue.

They all referred to the state’s existing ethics law when asked what policies exist to prevent lawmakers and their staff from using their knowledge in prediction markets.

The law restricts elected officials and public employees from using any information they obtain from their positions for their own financial gain.