Nevada senators urge crackdown on wildfire bets, cite public safety and insider trading fears

Roughly $1.3 million was wagered on prediction market bets tied to the Palisades and Eaton fires in California. 

Now, Nevada's senators are pushing back, saying that disaster betting poses serious public safety risks.

Here's what to know

Nevada Senators Catherine Cortez Masto and Jacky Rosen are among the Democrats calling on federal regulators to curb wildfire prediction markets, saying financial gain should not be tied to disasters that endanger communities.

Cortez Masto and Rosen signed onto a letter from Oregon Senator Jeff Merkley to the Commodity Futures Trading Commission seeking action over offshore platforms that let users wager on wildfires and other natural disasters.

Nine senators signed the letter. The letter was also signed by senators Alex Padilla, Adam Schiff, Jeanne Shaheen, Martin Heinrich, Ron Wyden, and Amy Klobuchar.

In the letter, the senators warned, "Offering bets on destructive wildfires threatens to minimize communities' suffering, all so the rich and powerful can profit."

The letter also noted that, "There's also the heightened risk, according to state and local fire officials, that individuals could be tempted to commit arson in order to make sure their bets are successful. By offering contracts on fires, prediction market sites run the risk of encouraging people to influence fires that have already started, creating additional concerns around public safety and insider trading."

More background

Their appeal grew after users bet on the Palisades and Eaton fires, including contracts on questions like "How many acres will the Palisades wildfire burn in total?" and "Will all wildfires be fully contained by February?" as reported by My News 4.

In a statement to NBC Los Angeles, Polymarket defended its model, saying that when tragedies strike, "people turn to news for commentary, and they come to Polymarket for information."

The controversy comes as online gambling continues to expand. Even when platforms frame betting as entertainment, the industry's rapid growth has fueled concerns about predatory design, aggressive advertising, financial harm, and the ease of placing real-time wagers on fast-moving events.

Where can I learn more?

For more context, these stories explore the policy, public safety, and industry questions tied to wildfire risk and gambling.

• In California, lawmakers' push to overhaul wildfire response has divided residents and officials.

• Across the West Coast, utilities are deliberately cutting power to reduce wildfire threats.

• At Penn Entertainment, investors say executive perks raise serious questions as gambling scrutiny grows.

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