HB 3419 builds on an Oklahoma law passed in 2025. That law made corrupt use of nonpublic information by state agency officers, employees, or contractors a felony. Now, current and past officers, employees, and contractors of a “political subdivision” are included as well. That brings counties, municipal bodies, school boards, and similar local offices into scope.
Local Offices Face the Same Standard
The legislation was passed by the House on March 24 and by the Senate on April 28. It was forwarded to the governor on the same day, as per the Oklahoma Legislature’s bill record. The act would take effect on November 1, 2026, provided it gets approval.
Oklahoma is no longer viewing the issue of misusing sensitive government information as only a state-agency problem. Local officials may also see contract details, zoning decisions, procurement plans, tax matters, enforcement steps, or other information that could carry financial value before becoming public.
What the Bill Prohibits
The enrolled version outlines several acts that may constitute a felony. Under the bill, a covered individual is not allowed to do the following:
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Use nonpublic information for personal benefit;
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Acquire or divest a financial interest in connection with the information;
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Speculate or wager based on the information;
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Disclose the information to anyone not authorized to receive it;
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Assist any other person in carrying out any such actions.
This language is broad enough to cover both traditional financial conflicts of interest and novel event-based speculation. The bill does not explicitly mention prediction markets. However, its reference to speculation and wagering based on the information allows the provision to apply to more activities than just securities trading.
The penalties are substantial as well. A conviction can result in a fine of up to $10,000 or imprisonment for up to five years, or both. Additionally, the person would be disqualified from holding public office in Oklahoma and entering into a state contract.
HB 3419 also deals with a loophole regarding employment. The law already mentioned removal from office. Under the new version, a violation becomes grounds for termination from government employment. That is significant for non-elected staff who deal with sensitive information without holding public office.
Gambling Tax Bill Also Advances
HB 4432 is an additional bill that is pending before the governor. This bill amends Oklahoma tax treatment for wagering losses starting from tax year 2027.
According to HB 4432, wagering losses deductible under federal rules would be excluded from the state’s $17,000 cap on itemized deductions. It does not revise the federal gambling-loss provision. However, it would stop eligible wagering losses from being squeezed by the state cap.
Implications for Prediction Markets
HB 3419 is not a standard gambling bill. However, it is important for event-based markets, as it extends to speculation and wagering based on nonpublic government information.
Oklahoma is trying to define more clearly what might be considered problematic behavior as prediction markets develop. While the bill is wide-ranging in scope, its actual effect will depend on enforcement. For now, it suggests that insider use of government information is no longer confined to securities regulation alone.
