May 27, 2026
EXECUTIVE ORDER NO. 37
ESTABLISHING ETHICS GUARDRAILS REGARDING STATE EMPLOYEE PARTICIPATION IN PREDICTION MARKETS
WHEREAS, the people of this state are entitled to a government that acts solely in the public interest and maintains the highest standards of integrity, impartiality, and public trust; and
WHEREAS, state employees and officers may, through the course of public service, obtain confidential, pre-decisional, or sensitive information that is not available to the general public; and
WHEREAS, the North Carolina State Ethics Act prohibits public servants from using or disclosing nonpublic information gained in the course of, or by reason of, their official responsibilities to affect a personal financial interest of themselves or their family; and the State Ethics Act further prohibits public servants from improperly using or disclosing confidential information in N.C. Gen. Stat. § 138A-34; and
WHEREAS, N.C. Gen. Stat. § 14-234.1 makes it unlawful for any officer or employee of the State to, in reliance on information which is made available to them in their official capacity and which is nonpublic, acquire a pecuniary interest in any property, transaction, or enterprise or gain any pecuniary benefit which may be affected by such information or official action, or to intentionally aid someone else to do so; and
WHEREAS, the misuse of information for personal gain, or the appearance that governmental decisions have been or may be influenced by personal financial interests, contradicts North Carolina law and undermines the public’s confidence in government and public institutions; and
WHEREAS, online prediction markets are digital platforms that permit individuals to buy, sell, trade, or otherwise wager on the predicted occurrence, nonoccurrence, timing, magnitude, or outcome of future events, including elections, sporting events, politics, global current events, and other public developments; and
WHEREAS, Americans are increasingly worried about online prediction markets and the failure of such platforms to prevent people with insider information from manipulating or profiting from them; and
WHEREAS, public trust and confidence in government and other public institutions is eroded when state officials and employees use nonpublic information for pecuniary gain through participation in online prediction markets; and
WHEREAS, pursuant to Article III of the North Carolina Constitution and N.C. Gen. Stat. §§ 143A-4 and 143B-4, the Governor is the chief executive officer of the state and is responsible for formulating and administering the policies of the executive branch of state government; and
WHEREAS, pursuant to N.C. Gen. Stat. § 147-12, the Governor has the authority and the duty to supervise the official conduct of all executive and ministerial officers.
NOW, THEREFORE, by the authority vested in me as Governor by the Constitution and laws of the State of North Carolina, IT IS ORDERED:
Section 1. Definitions
For purposes of this Executive Order:
- “Online prediction market” means an online platform, exchange, market, or mechanism that allows agreements, contracts, transactions, or swaps between users over the occurrence, non-occurrence, or specific outcome of a future event.
- “State employee” means all officers, employees, interns, and appointees serving in the Executive Branch, whether full-time, part-time, temporary, or unpaid.
- “State resources” includes state time, facilities, devices, networks, funds, systems, and other government property or services.
Section 2. Prohibited Conduct
No state employee shall:
- Use nonpublic information obtained through their position as a state employee or from the performance of their official duties to participate in any online prediction market.
- Use their position to influence an event in which the employee holds a financial interest through any online prediction market.
- Use nonpublic information obtained through their position as a state employee or from the performance of their official duties to assist someone else to participate in any online prediction market.
- Participate in any online prediction market to the extent the subject matter of the contract, agreement, transaction, or swap is substantially related to the employee’s official duties, agency responsibilities, decision-making authority, or access to nonpublic information.
- Participate in any online prediction market to the extent the contract, agreement, transaction, or swap is tied to direct actions or decisions of the employee’s agency, regardless of whether the employee has personal involvement in the action or decision.
- Use state resources to access, monitor, fund, facilitate, or trade on any such platform, except as authorized for lawful regulatory, enforcement, cybersecurity, or research purposes.
Violations of this Executive Order may result in disciplinary action as permitted under relevant state employment law and may be referred to the State Ethics Commission and/or law enforcement.
Section 3. Applicability
This Executive Order applies to all Executive Branch agencies, boards, commissions, and offices under the authority of the Governor to the fullest extent permitted by law.
Leaders of other Council of State Agencies, the University of North Carolina System, the North Carolina General Assembly, and the North Carolina Judicial Branch are encouraged to adopt similar standards that apply to their respective officers and employees.
Section 4. Effect on Existing Law or Regulation
Nothing in this Executive Order shall be construed to contravene any federal or state law or regulation. Nothing in this Executive Order shall affect or alter the existing statutory powers of any state agency.
Section 5. Severability
If any provision of this Executive Order or its application to any person or circumstance is held invalid by any court of competent jurisdiction, this invalidity does not affect any other provision or application of this Executive Order, which can be given effect without the invalid provision or application. To achieve this purpose, the provisions of this Executive Order are declared to be severable.
Section 6. Effect and Duration
This Executive Order is effective immediately and shall remain in effect unless repealed, replaced, or rescinded by another applicable Executive Order.
IN WITNESS WHEREOF, I have hereunto signed my name and affixed the Great Seal of the State of North Carolina at the Capitol in the City of Raleigh, this 27th day of May in the year of our Lord two thousand and twenty-six.
Josh Stein
Governor
ATTEST:
Elaine F. Marshall
Secretary of State
Division/Office
Document Entity Terms
First Published
Last Updated