FlightAware Sues Kalshi Over Flight Cancellation Prediction Markets

FlightAware is suing prediction market Kalshi, alleging the company used its flight-tracking data and branding without permission to operate betting markets tied to flight cancellations.

Kalshi began allowing users to trade on the number of flights cancelled across the United States or at individual airports about a month ago. FlightAware alleges Kalshi displayed its information and branding in connection with those markets even after being asked to stop.

FlightAware challengesKalshi’ss flight cancellation markets

FlightAware said it was not told that its data would be used to determine the outcomes ofKalshi’ss flight-related markets and learned about the activity after media reports drew attention to them.

“Kalshi never informed FlightAware that it would rely on FlightAware's data to determine the outcome of these betting markets,” the lawsuit states.

Kalshi operates prediction markets that allow users to trade contracts based on the outcomes of future events. Such markets can cover subjects ranging from political elections to entertainment and other real-world events.

FlightAware’s lawsuit raises broader concerns about using real-world operational data to settle prediction markets. The flight tracker argues that markets tied to cancellations could create incentives for manipulation and potentially interfere with aviation operations.

FlightAware raises safety concerns

Prediction markets have previously faced scrutiny over the possibility that people with privileged information could profit from events before they become public. The source material cites incidents involving suspiciously timed trades on Polymarket and allegations involving advance knowledge of presidential speeches on Kalshi.

FlightAware argues that similar incentives involving flight cancellations could create safety risks for passengers and airport workers if someone attempted to influence an outcome for financial gain.

The company is seeking a jury trial and has not specified the amount of damages it wants Kalshi to pay. The lawsuit leaves the court to determine whetherKalshi’ss alleged use of FlightAware’s data and branding violated the flight tracker’s rights.