FlightAware is suing Kalshi over its use of flight data and branding. According to TechCrunch, the real-time flight tracker claims the betting platform used its data and branding to host markets where users can wager on U.S. flight cancellations without permission.
FlightAware says it learned about Kalshi's flight cancellation prediction markets through media reports. Kalshi launched the markets roughly a month ago, allowing users to bet on how many flights would be canceled across the country or at specific airports. The lawsuit alleges Kalshi used FlightAware's proprietary data to settle these bets without disclosure and continued displaying FlightAware's branding after being told to stop.
FlightAware argues the markets create safety risks for travelers and airport workers. If betting markets can be manipulated to influence flight cancellations, financial incentives could clash with operational safety.
Kalshi and other prediction market platforms have faced manipulation concerns before. Per the source, a White House teleprompter operator allegedly made over $100,000 on Kalshi by betting on presidential speech contents he had advance knowledge of. A Polymarket user placed $32,000 betting on Nicolás Maduro's removal from power, just hours before the U.S. military captured him, generating a $400,000 windfall. Information asymmetry has repeatedly attracted traders with inside knowledge.
The prediction market industry operates in a regulatory gray zone despite attracting Silicon Valley entrepreneurs and billions in venture capital. If FlightAware wins, it could require prediction market platforms to negotiate data licensing deals or face lawsuits, signaling the end of the industry's unregulated period.
FlightAware is demanding a jury trial but has not specified damages. TechCrunch reached out to Kalshi for comment. The case may reshape how prediction markets access and use real-world data.
