Yep, that man's head is on fire. Of course, nobody could foresee an accident like this happening, especially not the host who pulled the stunt, Franklin Barazarte. After all, he claims that he's been dousing people's heads with highly flammable liquids and setting them on fire for more than 20 years without incident. Just like that one guy in the circus who claims that he's been sticking his head in lions' mouths for 20 years without incident.
Also, he might be lying. Barazarte is claiming that it was all a prank, but rumors to the contrary suggest that, fearing that Houchin's "powers of magic" might be something otherworldly, the host was actually trying to expel demons from the unsuspecting magician's soul. So that makes more sense, right?