Goldman Sachs Group Inc. has updated its internal trading guidelines to restrict staff participation in the growing prediction-market space, permitting only sports and entertainment wagers under the revised policy. The New York-based bank retooled its personal trading rules to address regulatory concerns tied to event-based betting.
Under the change, employees are barred from placing trades on event contracts that concern particular companies, with Goldman Sachs specifically included among those companies. The policy also disallows wagers on election outcomes and bets tied to the performance of financial markets, according to a document reviewed by Bloomberg News.
The bank says repeated breaches of the rule could trigger disciplinary action up to termination or result in the closure of an employee’s trading account. In certain cases, Goldman Sachs may require employees who made prohibited trades to surrender any profits that exceed $200 or to donate those amounts to charity.
A Goldman Sachs spokesperson declined to comment on the policy.
Policy changes of this nature reflect the institution’s effort to limit staff exposure to event-based instruments that could raise regulatory or conduct concerns. The update narrows the types of prediction-market activity permitted for personnel, carving out only sports and entertainment bets while sweeping in corporate-specific contracts, electoral predictions and market performance wagers.
Employees subject to the rule face clear consequences for violations: potential account closure, employment termination, and financial remediation of gains above a modest threshold. The document that details these measures was reviewed by Bloomberg News, which reported the policy adjustments.
The bank declined to provide additional comment beyond confirming the new restrictions.
Sector impacts: The policy affects staff at financial institutions and touches regulatory and compliance functions within the banking sector. It also has implications for prediction-market platforms and market integrity oversight.