Senators Press CFTC to Ban Betting on Destructive Wildfires

In a letter addressed to Commodity Futures Trading Commission (CFTC) Chair Michael Selig, nine senators—including Jeff Merkley, Alex Padilla, and Amy Klobuchar—argued that platforms like Polymarket have turned public emergencies into speculative assets. The group highlighted that Polymarket accepted over $1.2 million in bets during the January 2025 Palisades and Eaton fires, which killed 31 people and destroyed more than 16,000 structures in Los Angeles.

The senators expressed deep concern that these markets could tempt individuals to commit arson to secure payouts or influence the trajectory of active fires. They urged the CFTC to implement strict guardrails as it develops new nationwide rules, questioning whether the agency intends to curb such contracts both within the United States and on offshore platforms. Polymarket defended its operations, stating that its platform provides timely information and that removing such markets would not prevent tragedies from occurring.

This push for oversight arrives amid intensifying legal scrutiny of the industry. New York Attorney General Letitia James recently filed a lawsuit against Kalshi, accusing the platform of operating an illegal gambling business. Consumer advocacy groups have similarly criticized the CFTC, arguing that rebranding sports-style wagers as event contracts fails to disguise their true nature as high-risk gambling.