If you're an Apple employee or contractor planning to make money using insider information to gamble in legally-gray "prediction markets," don't. Apple has made its stance clear in a new filing.
Prediction markets skirt the legal definition of gambling, which means they have become widely available in the United States in spite of gambling laws. These markets can be used to bet on everything from when a location might see its first snow to what colors the latest iPhones will be sold in.
Regardless of the legality of these markets, Apple has made it clear that using insider information to participate is considered insider trading. While the companies like Polymarket already have insider trading rules, these enable Apple to act against violators from their end.
The text is explicit and leaves no wiggle room:
"No Trading in Prediction Markets Based on Confidential Information. Do not participate in 'prediction markets' or similar platforms to wager, bet, trade, buy or sell contracts based on the outcome of future events, or otherwise enter into event contracts, when such activity involves the use of Apple Confidential Information (as defined in Apple's Business Conduct Policy) about Apple or any other company (including Apple suppliers, manufacturers, vendors or customers, such as cellular network carriers or other business partners) obtained in connection with your work at Apple."
"You must also not tip Apple Confidential Information to others who may participate in such markets. Apple Confidential Information includes, but is not limited to, material nonpublic information.
This prohibition applies whether or not the activity constitutes insider trading or securities trading under applicable laws."
The emergence of prediction markets has created a new avenue for mass fraud and insider trading. The technology to easily participate in such betting pools advanced faster than the laws and regulations can be written, so it has fallen to individual companies to attempt to police these things on their own.
These rules extend to employees that have left Apple or have been fired. All protections against insider trading extend to information that ties to unreleased or unannounced products.
Once a product, service, or update has been revealed, the restrictions are lifted. Then, of course, it is public knowledge and there is nothing left to bet on.
