FlightAware Sues Kalshi Over Flight Cancellation Data

FlightAware has sued prediction market platform Kalshi, alleging unauthorized use of its flight data and trademark in contracts tied to airport flight cancellations. The lawsuit adds to broader scrutiny of event-contract platforms as state authorities continue to challenge whether some offerings amount to unlicensed gambling.

FlightAware Sues Kalshi Over Flight Cancellation Data

What happened?

FlightAware has sued prediction market platform Kalshi, alleging unauthorized use of its flight data and trademark in contracts tied to airport flight cancellations. The lawsuit adds to broader scrutiny of event-contract platforms as state authorities continue to challenge whether some offerings amount to unlicensed gambling.

Why it matters

FlightAware has filed a lawsuit against Kalshi in the US District Court for the Southern District of New York, accusing the prediction market platform of using its flight cancellation data without authorization. The complaint centers on Kalshi contracts that let users trade on airport-specific flight cancellations during defined time periods, with FlightAware data allegedly used to help determine outcomes.

FlightAware has filed a lawsuit against Kalshi in the US District Court for the Southern District of New York, accusing the prediction market platform of using its flight cancellation data without authorization. The complaint centers on Kalshi contracts that let users trade on airport-specific flight cancellations during defined time periods, with FlightAware data allegedly used to help determine outcomes.

The dispute matters because prediction markets increasingly rely on outside data sources to settle real-world event contracts. If a data provider says its information is being used without permission, that can create legal and operational risk for platforms offering markets tied to travel, sports, politics or other measurable events.

FlightAware’s complaint also alleges trademark infringement and harm to its reputation. The company has objected to being associated with Kalshi’s flight cancellation markets and argued that a disclaimer distancing FlightAware from endorsement was not enough to address its concerns.

The lawsuit comes against a broader regulatory backdrop for Kalshi. State authorities, including New York officials, have challenged some prediction market products by comparing them to gambling or alleging they are being offered without proper state licensing.

FlightAware is seeking court orders to stop Kalshi from using its data in these markets. Kalshi had not publicly responded to the allegations in the source material.

Source: Cointelegraph

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