FlightAware Takes Legal Action Against Kalshi Regarding Predictions for Flight Cancellations
FlightAware, the real-time flight tracking service, has initiated legal action against Kalshi, a prediction market platform, claiming that it has used FlightAware’s data to facilitate gambling activities without permission.
Approximately a month ago, Kalshi began allowing users to place bets on flight cancellations in the United States and at specific airports. FlightAware alleges that Kalshi utilized its data and branding without authorization, continuing to display its information even after a request to cease such actions was made.
The lawsuit states, “Kalshi never notified FlightAware that it would depend on FlightAware’s data for the outcomes of these betting markets.” FlightAware contends that it was unaware of Kalshi’s flight cancellation betting until it was covered by the media.
Kalshi has been approached for a statement.
Platforms like Kalshi and Polymarket enable users to wager on various forthcoming events, including political election results and an artist’s weekly album sales.
Despite prohibitions against insider trading, instances of manipulation have arisen in these markets. For instance, a user on Polymarket placed a suspicious $32,000 bet on the ousting of Venezuelan President Nicolás Maduro shortly before the U.S. military detained him, resulting in a substantial payout of $400,000. Additionally, reports suggest that a teleprompter operator at the White House earned over $100,000 on Kalshi by strategically betting based on advance knowledge of presidential speeches.
FlightAware asserts that such gambling markets could be misused and potentially disrupt flight operations, thereby endangering the safety of passengers and airport staff.
The company is pursuing a jury trial but has not disclosed the exact amount of damages it is seeking.
