FlightAware sues Kalshi over US flight cancellation predictions

Popular real-time flight tracking company FlightAware has filed a lawsuit against the Kalshi prediction market platform. According to TechCrunch, the lawsuit was prompted by Kalshi allegedly operating unauthorized gambling markets on cancellations at US airports and of US flights in general. TechCrunch.com reports .

Kalshi reportedly launched prediction markets about a month ago that allowed users to bet on how many flights would be canceled in the US. According to FlightAware, the platform used the company’s data and brand name without authorization and continued displaying the data despite FlightAware’s demand that it stop.

The lawsuit alleges that Kalshi never disclosed that it relied specifically on FlightAware’s data to determine the outcomes of its betting markets. FlightAware’s management learned about these gambling markets only after the media began reporting on the news.

Prediction Markets and Security Threats

Kalshi and similar platforms such as Polymarket allow users to bet on various future events, from political election results to how many albums a musician will sell within a week. However, these markets have already shown a high potential for manipulation by participants, despite rules banning insider trading.

For example, a Polymarket user previously bet a suspicious $32,000 that Venezuelan President Nicolás Maduro would be removed from power by the end of January and won $400,000 just hours after the US military captured Maduro. It was also reported that a White House stenographer used confidential information about presidential speeches to earn more than $100,000 on the Kalshi platform.

FlightAware is concerned that such gambling markets could be abused to influence flights as well. The company believes this could pose a serious threat to the safety of ordinary passengers and airport employees.

At this stage, FlightAware is seeking a jury trial, but the lawsuit does not specify the amount of damages claimed. Kalshi has not yet officially responded to TechCrunch’s requests for comment.