The Arizona Secretary of State’s Office has introduced an internal policy preventing employees from participating in election-related event wagering or prediction markets using information gained through their public roles.
The policy took effect immediately and prohibits staff from using or sharing confidential, nonpublic election information to personally benefit financially, avoid losses or assist others in profiting from election-related wagers.
Secretary of State Adrian Fontes said the measure aims to protect confidence in Arizona’s election process and establish clear expectations for employees handling sensitive information.
“My top priority is to protect the integrity of our elections above all else. Implementing this policy is a proactive measure to protect both the voters in Arizona and our employees at the State Department. I know the professionals that run our elections across all 15 counties here in Arizona share my urgency in providing peace of mind to voters this election season,” said Secretary of State Adrian Fontes. “This policy provides clear standards that support fair competition and accountability.”
Policy Addresses Election Information Use
The directive requires Arizona Secretary of State’s Office employees to treat nonpublic information obtained through government service as confidential when it could be used for financial gain through prediction markets or event wagering.
Violations may result in disciplinary action, including termination, and may be referred to law enforcement authorities.
The rule reinforces existing Arizona laws covering public officers and employees while confirming it does not replace other legal obligations or alter the authority of the Secretary of State’s Office.
The measure follows similar actions from other Arizona officials. Maricopa County approved a comparable restriction, while Governor Katie Hobbs signed an executive order preventing state employees from using confidential information to profit from prediction markets.
Although Arizona law already prohibits election wagering, prediction market platforms have continued offering election-related contracts. Kalshi listed nine markets connected to Arizona’s upcoming primary election with combined trading volume exceeding $580,000.
Earlier in 2026, Arizona Attorney General Kris Mayes filed criminal charges against Kalshi, alleging the company operated an illegal gambling and election wagering business. A federal judge later paused the case while higher courts review jurisdiction issues.
Arizona Continues Wagering Oversight
The policy comes as Arizona manages changes within its wider event wagering sector. The Arizona Department of Gaming (ADG) will accept applications for limited event wagering licences from August 13 to August 27.
The regulator plans to issue 10 licences, allowing approved operators to offer retail-style sports betting through licensed racetracks or other authorised facilities.
Arizona legalised event wagering in 2021, and the ADG reported that residents have placed more than $33 billion in bets since then, generating over $175 million in privilege fees.
Limited event wagering operations will contribute 8% of revenue through privilege fees, with the ADG continuing to oversee licensing, regulation and revenue reporting.
The new election wagering policy adds to ongoing discussions around prediction markets, as regulators across the US continue defining rules for these products.
Source:
“Arizona Secretary Of State’s Office Announces Internal Policy Related To Election Event Wagering”, azsos.gov, Jul 16, 2026
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