Several US senators have penned a letter to the Commodity Futures Trading Commission (CFTC), demanding action against prediction markets that allow bets on destructive wildfires. The senators, representing Oregon, California, Nevada, Minnesota and New Hampshire, argue such markets trivialise community suffering for financial gain.

The letter cites Polymarket’s January 2025 offering of wildfire bets in Los Angeles, alongside another platform exclusively focusing on simulated bets regarding California wildfires. Concerns are raised about arsonists being tempted to start fires, potentially leading to public safety risks and insider trading.

As active wildfires rage across the Pacific Northwest, with Spokane’s Sheriff’s Office arresting a suspected arsonist, the urgency of the senators’ demands is underscored. Kalshi, one of the major prediction markets, has stated it does not allow such markets for fear of creating perverse incentives.

The CFTC did not immediately respond to further inquiries. This move highlights the growing intersection between technology and ethical considerations in a world increasingly intertwined with digital bets on natural disasters.