With recent wildfires causing widespread destruction in Southern California, how would you feel about someone profiting off of the devastating loss of your home or community?

It turns out, people are placing bets on wildfires on prediction markets like Polymarket, and now California lawmakers are calling for a crackdown on the concerning new trend, warning those bets could create an incentive for arson.

These lawmakers argue that people are profiting off of other people’s suffering, especially when it comes to natural disasters. That’s why they’re urging the government to step in.

“Wrightwood is a community where everybody comes together,” said longtime resident Leslie Mihalko.

That’s what the mountain community did after the devastating Bridge Fire of 2024 that burned 56,000 acres and destroyed 81 structures, including homes.

Most who live in Wrightwood have a deep appreciation for nature, but they’re also acutely aware that the biggest threat to their homes and livelihoods are wildfires.

But what about hearing that people are betting money on whether a fire will consume your home? Or betting on just how big a fire can get or how long it will last?

“Don’t people have better things to do than bet on things that could potentially affect the rest of a person’s life?” asked Mihalko.

In a letter, nine lawmakers, including California senators Alex Padilla and Adam Schiff, said that’s exactly what’s happening. They’re urging the Commodity Futures Trading Commission to implement what they call “common sense guardrails” to prevent people from profiting off of the suffering and devastation on digital gambling sites.

“It’s important to point out that federal law already prohibits gambling online for things like assassinations or terrorism,” said KTLA consumer reporter David Lazarus. “Well, it turns out lawmakers neglected to include natural disasters like wildfires as a part of that. So now people are gambling on things like the L.A. fires.”

The senators are pointing to prediction markets like Polymarket, where they say the platform accepted more than $1.2 million in bets surrounding the 2025 Eaton Fire, which killed at least 19 people and destroyed more than 9,000 buildings, and the Palisades Fire, which killed 12 people and destroyed 6,837 structures.

One reported bet that was made at the time was on whether the Palisades Fire would burn 10,000 acres by Friday.

Officials said these bets could encourage people to influence fires, even commit arson.

According to the letter, bets appeared to be offered on the offshore Polymarket site, but lawmakers are concerned it could make its way to the domestic market. (Source: KTLA)

Story Date: August 12, 2026