Kalshi is Sued by Flightaware Over Flight Cancelation Marketplaces
A service that tracks flights Prediction markets behemoth Kalshi is being sued by FlightAware for allegedly utilizing its name and data to operate “gambling markets on flight cancelations” without authorization.
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Kalshi said in July that markets will permit clients to wager on the chance of a flight cancelation. Concerns that the markets would provide financial incentives for people to interfere with air traffic or force airport closures led to criticism of the ideas.
FlightAware claimed that although Kalshi had designated it as the principal source agency for the markets’ settlement, it had not given Kalshi permission to use its name, data, or trademarks for that purpose.
Lawyers for the flight-tracking business stated in the complaint submitted to the U.S. District Court for the Southern District of New York on Monday that customers believed FlightAware was involved in the scheme due to Kalshi’s unlawful use of FlightAware’s name and data.
A request for comment from Reuters outside of work hours was not immediately answered by Kalshi.
Reuters’ checks revealed that the “US flight cancelations for the week ending at 5pm EDT on 8/14” contract was accessible on Kalshi’s website at the time of reporting. According to the listing, “Outcome verified from FlightAware.”
Since they outperformed pollsters in forecasting Republican Donald Trump’s victory over Democrat Kamala Harris in the 2024 U.S. presidential election, prediction markets like Kalshi and Polymarket have become increasingly popular.
Traders and gamblers can wager on a wide range of events on Polymarket and Kalshi, including elections, sports match outcomes, and even events pertaining to the wars in Iran and Ukraine.
FlightAware is requesting court orders prohibiting Kalshi from exploiting its name and data in addition to unspecified damages. A jury trial is also requested.