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FlightAware sues Kalshi over unauthorized use of data for flight-cancellation prediction markets
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Flight-tracking service FlightAware has filed a lawsuit against prediction markets company Kalshi, accusing it of using FlightAware's data and name without permission to operate gambling markets on flight cancellations. In July, Kalshi launched contracts allowing customers to bet on flight-cancellation risk, which drew criticism over potential incentives for disrupting air travel. FlightAware claims Kalshi listed it as the primary source for settlement but had no authorization to use its data, name, or trademarks. The complaint was filed in the U.S. District Court for the Southern District of New York. FlightAware seeks unspecified damages, court orders to stop Kalshi from using its data and name, and a jury trial. Kalshi did not immediately respond to a request for comment. Prediction markets like Kalshi have grown in popularity since the 2024 U.S. presidential election.
Source report
Source: Reuters
Aug 11 (Reuters) — Flight-tracking service FlightAware has filed a lawsuit against prediction markets company Kalshi, accusing it of using FlightAware’s data and name without authorization to operate what it describes as "gambling markets on flight cancellations."
Key Details
- July 2026: Kalshi launched markets allowing customers to bet on flight-cancellation risk. The move drew criticism over concerns that such markets could create financial incentives for individuals to disrupt air travel or cause airport closures.
- Unauthorized Use: FlightAware stated that Kalshi named it as the primary source agency for settling the markets, but that it had not granted permission for Kalshi to use its name, data, or trademarks for that purpose.
- Legal Filing: In a complaint filed Monday in the U.S. District Court for the Southern District of New York, FlightAware’s lawyers argued that Kalshi’s unauthorized use of its data and name led customers to believe FlightAware was involved in the scheme.
- Kalshi’s Response: Kalshi did not immediately respond to a Reuters request for comment outside of business hours.
- Active Contract: At the time of reporting, Reuters checks showed that a contract titled "US flight cancellations for the week ending at 5pm EDT on 8/14" was still available on Kalshi’s website. The listing stated: "Outcome verified from FlightAware."
Broader Context
Prediction markets such as Kalshi and Polymarket have surged in popularity since the 2024 U.S. presidential election, when they outperformed pollsters in predicting Republican Donald Trump’s victory over Democrat Kamala Harris. These platforms allow traders and gamblers to bet on a wide range of events, including sports matches, elections, and even outcomes related to conflicts in Iran and Ukraine.
Relief Sought
FlightAware is seeking unspecified damages, court orders barring Kalshi from using its data and name, and a jury trial.
Reporting by Preetika Parashuraman in Bengaluru; Editing by Lincoln Feast.
Source
Yahoo FinanceWestern
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FlightAware sues Kalshi over flight-cancellation betting, then drops lawsuit