Fire experts warn such markets could incentivize arson.
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Several US senators have written a letter to the Commodity Futures Trading Commission (CFTC), inquiring about the agency’s “plans to crack down on prediction markets” that offer “contracts for individuals to bet on wildfires.”
“Offering bets on destructive wildfires threatens to minimize communities’ suffering, all so the rich and powerful can profit,” wrote the group of senators, who represent Oregon, California, Nevada, Minnesota, and New Hampshire.
The document specifically cites that Polymarket hosted bets in January 2025 on the wildfires in Los Angeles, and it mentions another website which specifically accepts “simulated bets” exclusively on California wildfires.
Source: Ars Technica
