Governor Gavin Newsom just dropped an executive order that’s basically saying “not on our watch” to the kind of corruption that’s been running rampant in Trump’s Washington. On March 27, he signed an order that bans California state officials from using insider information to make money off prediction markets, those betting platforms where people wager real cash on real-world events like military strikes, political decisions, and economic moves.

If you’ve been scrolling through the news lately, you’ve probably seen some absolutely wild stories about federal insiders cashing in big time. We’re talking about people with access to classified government information placing suspiciously timed bets just hours or days before major military operations or policy announcements. One trader made nearly $1 million since 2024 by betting on Iran and Israel-related events with a shocking 93% win rate. Another person made $410,000 betting on the capture of Venezuela’s president, just hours before it happened. Six suspected insiders collectively made $1.2 million betting on a U.S. strike against Iran using accounts that were literally created days before the strike. Yeah, that’s not a coincidence.

This kind of insider profiteering has been a problem in federal government for a minute now, and Newsom’s making it clear that California isn’t going to play that game. The new executive order expands California’s already pretty solid ethics laws to specifically cover prediction markets. It means that anyone serving in the Newsom administration, whether they’re a direct appointee or working closely with the governor, can’t use non-public information to profit from these betting platforms. And it goes further than just protecting individual officials; the order also prevents them from helping their spouses, kids, business partners, or anyone else cash in on inside knowledge.

In a statement, Newsom said it straight up: “Public service should not be a get-rich-quick scheme”. He pointed out that while Trump’s Washington is “riddled with ethical failures and insider profiteering”, California is drawing a clear line. If you work for the state as a political appointee, your job is to serve the public, not to line your own pockets or your family’s pockets.

California already has some of the strongest ethics laws in the country, including strict conflict-of-interest rules and prohibitions on using public office for personal gain. This executive order just makes those protections even more airtight by explicitly naming prediction markets. The order went into effect immediately, so California’s officials are now on notice.

It’s a power move that highlights just how different California wants to operate compared to what’s happening at the federal level. While insiders in D.C. are gaming the system and making bank off government secrets, California’s saying that’s not how we do things here.