Senators Have Issue With Wildfire Bets on Polymarket

As the Timber Fire burns in Big Sur, Highway 1 was partially closed on Tuesday—and a group of senators thinks Polymarket users shouldn't be able to bet on how long it will be shut down, how many acres will ultimately burn, or anything else related to the wildfire. The Washington Post reports that nine Democratic senators have asked regulators to step in. In an Aug. 3 letter to Commodity Futures Trading Commission chair Michael Selig, they argue wildfire markets could encourage arson or slow firefighting efforts, calling them a "perverse incentive." CBS News reports their letter states that the January 2025 wildfires that hit Los Angeles spurred $1.2 million in fire-related Polymarket bets.

Polymarket says US users can't legally access such bets, which are available only on its international platform, and argues that "removing these markets does not prevent a tragedy but makes the most accurate information less accessible to the people who need it most. ... When tragedy unfolds, people turn to the news for commentary and they come to Polymarket for information." The senators are seeking a response by Friday.