FlightAware Sues Kalshi Over Unauthorized Use of Flight Cancellation Data in New York

FlightAware filed a lawsuit against prediction markets firm Kalshi in the US District Court for the Southern District of New York, accusing Kalshi of using FlightAware’s “data and name” to run “gambling markets on flight cancellations” without permission.

“using its data and name to run "gambling markets on flight cancellations" without permission”

Reuters

Reuters reported that in July Kalshi announced markets allowing customers to bet on flight-cancellation risk, and that FlightAware said Kalshi named it as the primary source agency for settlement despite FlightAware not authorizing the use of its name, data or trademarks.

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The Reuters story also said the contract “US flight cancellations for the week ending at 5pm EDT on 8/14” was available on Kalshi’s website at the time of reporting, with the listing stating: "Outcome verified from FlightAware."

FlightAware’s complaint, as described by Reuters, argued that Kalshi’s unauthorized use meant customers assumed FlightAware was involved in the scheme, and FlightAware sought unspecified damages, court orders barring Kalshi from using its data and name, and a jury trial.

FlightAware’s lawsuit, as described by TradingView, said Kalshi had continued listing event contracts based on flight cancellations even after repeated demands to stop using FlightAware’s registered trademark and offering bets “verified by FlightAware’s data.”

TradingView quoted the lawsuit’s argument that “A market that allows the public to wager on whether flights will be delayed or cancelled creates an incentive for participants to interfere with air travel—including by causing or contributing to flight cancellations—to profit from their wagers,” and it added that “Worse, wagers on flights being timely may incentivize airline, airport, or other aviation workers to cut corners to keep a flight on time.”

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TechCrunch reported that FlightAware argued Kalshi displayed FlightAware’s branding and information even after FlightAware demanded Kalshi stop, and that Kalshi started letting users bet on the number of flights canceled in the U.S. or at a given airport about a month earlier.

TechCrunch also said FlightAware maintained it did not know about Kalshi’s flight cancellation bets until the media began reporting on the new prediction markets, while Kalshi and similar platforms like Polymarket were described as allowing bets ranging from election results to the number of albums a musician will sell in a given week.

FlightAware’s complaint, as summarized by CoinDesk, said Kalshi violated FlightAware’s license terms, ignored a cease-and-desist letter, and continued to reference FlightAware data for settling contracts even after adding a disclaimer that the markets were not endorsed by FlightAware.

“Kalshi violated FlightAware’s license terms, ignored a cease-and-desist letter”

CoinDesk

CoinDesk reported that FlightAware said betting on flight cancellations creates safety risks by giving participants a financial incentive to influence whether flights are delayed or canceled, and it also said Kalshi identified US Department of Transportation flight data as an alternative source for settling the contracts.

The Reuters report framed the dispute as part of a wider legal environment for prediction markets, noting that prediction markets such as Kalshi and Polymarket have soared in popularity since the 2024 U.S. presidential election and that Kalshi and Polymarket allow traders and gamblers to bet on events ranging from sports matches to elections and events related to the wars in Iran and Ukraine.

In the same Reuters account, FlightAware’s requested relief included unspecified damages, court orders barring Kalshi from using its data and name, and a jury trial, while Reuters also said Kalshi did not immediately respond to a Reuters request for comment outside of business hours.