Senate Bill S9825

                                 
BILL NUMBER: S9825

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the public officers law, in relation to prohibiting the
use of prediction markets and/or mobile sports wagering platforms by
certain public officers when using information acquired by such person
in the course of their official duties

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Subsection 3(c) of article 74 of the public officers law is
amended to read as follows: c. No officer or employee of a state agency,
member of the legislature or legislative employee should disclose confi-
dential information acquired by him or her in the course of his or her
official duties nor use such information acquired by him or her in the
course of his or her official duties to further his or her personal
interests, including using that information to participate in prediction
markets and/or mobile sports wagerinc 
PLATFORMS THAT INCLUDE BUT ARE NOT
LIMITED TO

              

*POLYMARKET

*KALSHI

*PREDICTLT

*IOWA ELECTRONIC MARKET

*AUGER

*ROBINHOOD

*FANDUEL

*DRAFTKINGS

 
PURPOSE AND JUSTIFICATION:

IN THE DAYS BEFORE THE UNITED STATES GOVERNMENT LAUNCHED THE OPERATION
TO CAPTURE THE PRESIDENT OF VENEZUELA, NICOLAS MADURO, AN ANONYMOUS USER
CREATED AN ACCOUNT AND PLACED FOUR BETS ON POLYMARKET REGARDING THE
CAPTURE OF MADURO, RESULTING IN A PAYOUT OF OVER $400,000. WHILE THE
IDENTITY OF THIS USER HAS YET TO BE DETERMINED, IT IS SPECULATED THAT
SOMEONE WITH FIRSTHAND KNOWLEDGE OF THE OPERATION PROFITED FROM THE
INFORMATION THEY ACQUIRED DURING THEIR OFFICIAL DUTIES.

SOME ONLINE PREDICTION MARKETS, LIKE POLYMARKET, DO NOT HAVE RULES
AGAINST INSIDER TRADING. IN FACT, THE CEO OF POLYMARKET, SHAYNE COPLAN,
HAS STATED HE BELIEVES THAT INSIDER TRADING ON HIS PLATFORM IS A GOOD
THING. AT AN AXIOS BUSINESS EVENT, HE SAID, "WHAT'S COOL ABOUT POLYMARK-
ET IS THAT IT CREATES THIS FINANCIAL INCENTIVE FOR PEOPLE TO GO AND
DIVULGE THE INFORMATION TO THE MARKET".

TO PREVENT INSIDER TRADING FROM HAPPENING ON PREDICTION MARKETS IN NEW
YORK STATE, THIS LEGISLATION WILL PREVENT NEW YORK STATE ELECTED OFFI-
CIALS, STAFF CF AN ELECTED OFFICIAL, AGENCY OFFICIALS, AND EMPLOYEES OF
A STATE AGENCY FROM USING INFORMATION ACQUIRED BY THEM IN THEIR OFFICIAL
DUTIES TO PROFIT FROM THAT INFORMATION ON ONLINE PREDICTION MARKETS AND
SPORTS WAGERING PLATFORMS.

THIS LEGISLATION MIRRORS LEGISLATION INTRODUCED BY NEW YORK STATE
CONGRESSMAN RITCHIE TORRES THAT BARS FEDERAL OFFICIALS, POLITICAL
APPOINTEES, EXECUTIVE BRANCH EMPLOYEES, AND CONGRESSIONAL STAFF FROM
USING INFORMATION OBTAINED IN THEIR OFFICIAL DUTIES TO PROFIT OFF OF
ONLINE PREDICTION MARKETS'.

 
LEGISLATIVE HISTORY:

NEW LEGISLATION

 
FISCAL IMPLICATIONS:

NONE

 
EFFECTIVE DATE:
THIS ACT SHALL TAKE EFFECT ON THE NINETIETH DAY AFTER IT SHALL BECOME
LAW.