House bill proposes banning wildfire bets on prediction markets

A bill introduced in the House would amend the Commodity Exchange Act to specifically prohibit “wildfire event contracts” on prediction markets. The text defines these as contracts where the payout depends on the occurrence, location, or intensity of a wildfire.

Why it matters: This is a narrow regulatory proposal. It does not ban prediction markets generally, nor does it ban betting on other natural disasters like hurricanes or floods. Its practical impact would be limited to the specific niche of wildfire-related financial instruments. Whether it moves forward depends on whether the committees prioritize this specific gap in current commodity regulations.

Who it affects

• Prediction market platforms that currently list wildfire-related contracts

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This is a bill introduced in the U.S. House of Representatives, available on Congress.gov; check the official document for the exact legal definitions before relying on this summary.

Agency: House
Source: Congress.gov — read the official document