Flight-tracking platform FlightAware filed a lawsuit in the U.S. District Court for the Southern District of New York on Monday, accusing prediction markets giant Kalshi of running unauthorized gambling markets on flight cancellations using its proprietary data and name. According to the complaint, Kalshi launched contracts allowing users to wager on flight-cancellation risks without securing permission or notifying the tracking service.
Lawsuit Details and Unauthorized Data Use
According to Reuters, Kalshi announced prediction markets in July that let customers bet on flight-cancellation rates. Lawyers for FlightAware stated in the court filing that Kalshi named FlightAware as the primary source agency for settling these bets, which led customers to assume the tracking company actively participated in the scheme. TechCrunch reported that Kalshi continued displaying FlightAware branding and data even after the tracking company demanded that the platform stop. FlightAware maintained that it remained entirely unaware of the arrangement until media outlets began reporting on the prediction markets. The disputed listing on Kalshi’s website stated that the outcome would be “verified from FlightAware,” according to Reuters.
Safety Concerns and Prediction Market Popularity
The introduction of flight-cancellation bets drew sharp criticism over concerns that financial incentives could encourage individuals to disrupt air travel or cause airport closures, according to Reuters. Reuters noted that prediction markets like Kalshi and Polymarket have surged in popularity since the 2024 U.S. presidential election, where they fared better than pollsters in predicting Donald Trump’s victory. These platforms allow traders to wager on diverse future events, ranging from sports outcomes and political races to military conflicts. However, TechCrunch highlighted prior controversies on these platforms, including a user who profited $400,000 after betting on the removal of Venezuelan President Nicolás Maduro, and another instance where a White House teleprompter operator allegedly profited from insider knowledge of presidential speeches. FlightAware is seeking a jury trial and unspecified damages, alongside court orders to bar Kalshi from using its name and data.
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