Hollywood Studios Restrict Employees From Using Insider Information to Bet on Prediction Markets

Odaily: Hollywood studios and production companies are issuing rules to employees prohibiting them from using insider information to bet on prediction markets. The bans cover events such as film and television companies' earnings reports, casting decisions, and release dates, and also prohibit employees from disclosing information to friends and family for them to place bets; at least one company has set up an anonymous hotline for employees to report colleagues suspected of betting.

Penske Media recently updated its employee handbook to prohibit employees from betting on award nominations, casting decisions, production schedules, and release dates. Joshua Mitts, a law professor at Columbia University, said that transactions on blockchain platforms may be difficult to trace if they use mixers and conceal identities.

There have already been cases of violations among entertainment industry workers. In February this year, Kalshi said that a video editor at MrBeast's company used confidential information to bet and made a profit of about $5,000; the employee was fired and fined $20,000. U.S. prosecutors also charged two individuals suspected of using confidential information to bet on Polymarket, and the case is still being heard. (Decrypt)