FlightAware sues Kalshi over flight-cancellation markets

Aug 11 (Reuters) - Flight-tracking service ‌FlightAware is suing ​prediction ​markets giant Kalshi accusing the company of using its data and name to run "gambling markets on flight cancellations" without ‌permission.

• In July, Kalshi announced markets allowing customers to bet ⁠on flight-cancellation risk. The plans drew criticism over concerns that the markets could create financial ‌incentives for people to disrupt ‌air travel or cause airport closures.

• FlightAware said Kalshi had named it as the primary source agency for the markets' settlement, but ​that it had not authorized Kalshi to use its name, data or trademarks for that purpose.

• Kalshi’s unauthorized use of FlightAware’s ⁠data and name meant customers assumed FlightAware was involved in the scheme, lawyers for the flight-tracking ​company wrote in the complaint filed in the U.S. District Court for the Southern District of New York on ​Monday.

• Kalshi did not immediately respond ‌to a Reuters' request for comment outside of business hours.

• The "US flight cancellations for the week ending at 5pm ⁠EDT on 8/14" contract was available on Kalshi's website at the time of reporting, Reuters' checks showed. The listing stated: "Outcome verified from FlightAware."

• Prediction markets ⁠such as Kalshi and Polymarket have soared in popularity since the 2024 U.S. presidential ​election, when they fared better than pollsters in predicting Republican Donald Trump's victory over Democrat Kamala Harris.

• Polymarket and Kalshi allow traders and gamblers to bet ‌on a wide array of events, ranging from the results of sports matches to elections and even on ‌events related to the wars in Iran and Ukraine.

• FlightAware is seeking ⁠unspecified damages, as well as ‌court orders barring Kalshi ​from using its data and name. It also seeks a jury trial.

(Reporting by Preetika Parashuraman in Bengaluru; Editing by ‌Lincoln Feast.)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• US revokes over 175,000 visas under Trump administration, State Dept says
• Johannesburg's water crisis angers voters, drives rich off-grid
• European shares edge higher as energy stocks climb on elevated oil prices