FlightAware sues Kalshi over bets on flight cancellations
The flight-tracking company alleges Kalshi used its data and trademark without permission to settle contracts on canceled flights.
Real-time flight tracker FlightAware is taking legal action against prediction market platform Kalshi, claiming the latter used FlightAware's data and branding without permission to host gambling markets. Kalshi began allowing users to bet on the number of flights canceled in the U.S. or at specific airports around a month ago. FlightAware alleges that Kalshi violated its rights by displaying FlightAware's branding and information even after the data provider requested Kalshi cease using its data.
The lawsuit states that Kalshi never informed FlightAware that it would rely on FlightAware's data to determine the outcome of these betting markets. FlightAware maintains it was unaware of Kalshi's flight cancellation bets until media coverage of these prediction markets emerged. TechCrunch has contacted Kalshi for a response. Prediction markets, such as Kalshi and Polymarket, let users bet on various future events, from political outcomes to stock market performance.
These markets have proven vulnerable to manipulation despite rules against insider trading. Notably, a Polymarket bettor placed $32,000 on Venezuelan President Nicolás Maduro's removal by January 31st, profiting $400,000 when Maduro was captured by U.S. military. A White House teleprompter operator is said to have earned over $100,000 using Kalshi by leveraging insider knowledge of the president's speeches.
FlightAware contends these gambling markets could similarly be abused to interfere with flights, posing a safety risk for passengers and airport staff. The company is seeking a jury trial and has not disclosed the monetary amount it is claiming in damages.
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