People are betting on wildfires on Polymarket. What could go wrong?

A firefighter in Santa Clara County, California on July 26, 2026. | Tayfun Coskun/Anadolu via Getty Images This story appeared in Today, Explained, a daily newsletter that helps you understand the most compelling news and stories of the day.

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The 2026 wildfire season on the West Coast is shaping up to be an especially bad one: In Oregon, more than 2 million acres have already burned, breaking a record set just a few years ago, in 2024.

In neighboring Washington state, suburbs around the city of Spokane recently burned in an increasingly common example of fires reaching urban and suburban areas (as my colleague Caitlin Dewey covered recently ).

And the consequences are spreading far beyond where the fires are burning, with hazardous smoke from the Pacific Northwest drifting as far away as New England .

Much of this is a story about climate change, as increasingly dry, hot summers provide ample fuel for fires.

But the crisis is also being made worse by the Trump administration: Staff cuts to the US Forest Service have left the agency stretched thin and unable to respond as effectively to fires, while a planned reorganization is also set to shutter Forest Service labs researching and tracking wildfires.

EPA research into wildfires and wildfire smoke has also been slashed.

All of this — plus a Trump administration shift away from letting some fires burn themselves out, which has further increased the workload on wildland firefighters — has also resulted in a more dangerous fire season for firefighters; Reuters reported this week that firefighters are “being overrun by wildfires at the highest rate in two decades” — with months still to go until the end of the season.

Go a little deeper As if the above weren’t enough to worry about, lawmakers are also raising a brand-new fire season concern: prediction markets.

Specifically, the possibility that bettors could turn to arson in order to manipulate prediction markets — and earn themselves some money.

Polymarket, on its international platform, has offered users the chance to bet on everything from when and where a fire might spread to when it could be contained or extinguished, which resulted in more than $1 million in bets on major fires in California last year.

High Country News reported in June that a new prediction market, called Wyldfyre, had launched specifically for betting on wildfires.

Legislators like Sen.