(The Center Square) – The Maricopa County Board of Supervisors unanimously passed a new policy prohibiting employees from using inside information to place bets at prediction markets.
Employees of Arizona’s most populous county are not allowed to disclose or use “nonpublic information obtained due to their public service” to place bets that would benefit their pockets, according to the policy.
The Phoenix-based board says employees violating the policy could face termination or legal consequences.
The policy notes it does not conflict with any state or federal law nor does it “alter the existing statutory powers of any Maricopa County elected office or department.”
The policy went into effect on Wednesday.
“In our ever-changing world, it’s important to remain vigilant and proactive when it comes to policy,” Supervisor Thomas Galvin said.
He added that he was grateful to his colleagues and staff “for their quick and comprehensive work to ensure this policy is airtight.”
“This policy is especially imperative as we approach a competitive midterm election,” Galvin said.
According to Supervisor Mark Stewart, the board’s discussion with the business community in Arizona sparked board members’ interest in proposing the policy.
Numerous Arizona companies have established policies that prevent employees from betting on items for which they have inside information, Stewart told The Center Square.
The policy is open-ended and preventative, Stewart said, adding that the county wanted to cover all of its bases when it comes to employees placing bets.
The policy only applies to workers who “report to the board of supervisors,” Stewart said, adding that the board is responsible for 51 county departments.
He said he did not think any county workers would place bets on prediction markets using inside information, but the county’s new policy “puts them on notice” that if they work in departments that handle “sensitive information,” they can’t use that information to “enrich themselves.”
Currently Arizona law prohibits wagering on election outcomes in the state.
In addition to the board of supervisors, Gov. Katie Hobbs also implemented a policy banning executive branch employees from using inside information to profit on prediction markets.
“Arizonans deserve a state government that works for them, not one where insiders exploit public service for their own gain,” said Hobbs. “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 Democratic governor added.
Arizona previously brought criminal charges against Kalshi, a company with a prediction market website. But in April, District Court Judge Michael Liburdi placed a temporary restraining order on the state’s case.
In May, Liburdi permanently blocked Arizona from prosecuting Kalshi.
