With wildfires raging throughout many portions of the West, lawmakers are seeking to rein in prediction market apps because some allow wagering on the outcomes of wildfires.
U.S. senators raised concerns that prediction market apps could be a motive for arson. In a letter to the Commodity Futures Trading Commission, which regulates the apps, they said, in part, "Offering bets on destructive wildfires threatens to minimize communities' suffering."
Andrea Dassopoulos, a research analyst with the International Gaming Institute in Las Vegas, has co-authored studies about gambling and behavior. She says betting on disasters is dehumanizing.
"When things are 'gamified,' it does sort of disconnect you from the reality that other people may be experiencing this in a profound, real way. It makes it almost not real," said Dassopoulos. "As gambling becomes increasingly more and more normalized and widespread, then that's just how we're experiencing all major events now, is through the lens of gambling."
The senators who signed the letter asked the commodities commission if it believes that prediction market app wagers about wildfires are in the public interest. They pointed to questions on apps that you can bet on, like how long a wildfire would last and how much would it destroy.
Senators in Western states who signed the letter include:
- Catherine Cortez Masto and Jackie Rosen, Democrats from Nevada
- Alex Padilla and Adam Schiff, Democrats from California
- Martin Heinrich, a Democrat from New Mexico
- Ron Wyden, a Democrat from Oregon
No Utah senators signed the letter. However, Utah did pass a law this year that defined “proposition bets” as gambling, which is illegal in the state.
Kalshi, a prediction market operator, sued Utah to prevent that law from being enforced. A federal judge ruled last week that prediction markets are subject to the state’s anti-gambling laws, but Kalshi is still fighting against enforcement.
Republican Utah Rep. Blake Moore also introduced the Event Contract Enforcement Act in March to prevent betting on war, terrorism, and other such events.
The POINTS ACT, introduced in March, is the first dedicated measure providing federal funding for gambling addiction. Lawmakers pointed to a increase in problem gambling related to prediction market apps.
This story was produced by the Mountain West News Bureau, a collaboration between Wyoming Public Media, Nevada Public Radio, Boise State Public Radio in Idaho, KUNR in Nevada, KUNC in Northern Colorado, KANW in New Mexico, Colorado Public Radio, KJZZ in Arizona and NPR, with additional support from affiliate newsrooms across the region. Funding for the Mountain West News Bureau is provided in part by the Corporation for Public Broadcasting and Eric and Wendy Schmidt.
Copyright 2026 KNPR News
