FlightAware, the real-time flight tracking service, has filed a lawsuit against prediction market platform Kalshi, accusing it of using FlightAware’s data without authorization to power betting markets on U.S. flight cancellations. The lawsuit, filed in federal court, alleges that Kalshi displayed FlightAware’s branding and data even after the flight tracker demanded it stop.
Unauthorized data use and branding
According to the complaint, Kalshi began offering bets on the number of flights cancelled in the U.S. or at specific airports about a month ago. FlightAware maintains it was not informed that its data would be used to settle these markets, and only learned of the betting products when media outlets began reporting on them.
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“Kalshi never informed FlightAware that it would rely on FlightAware’s data to determine the outcome of these betting markets,” the lawsuit states. FlightAware also claims that Kalshi used its name and branding without permission, which could mislead users into thinking the flight tracker endorsed or partnered with the prediction market.
TechCrunch has reached out to Kalshi for comment, but the company has not yet publicly responded to the lawsuit.
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Prediction markets and manipulation concerns
Kalshi is part of a growing wave of prediction market platforms, including Polymarket, that allow users to wager on a wide range of future events—from election outcomes to album sales. While these markets have gained popularity for their ability to aggregate information, they have also demonstrated vulnerability to manipulation.
In one notable incident, a Polymarket user bet $32,000 that Venezuelan President Nicolás Maduro would be removed from power by the end of January—just hours before the U.S. military captured him, earning the user a $400,000 payout. The timing of the bet raised questions about whether the user had insider knowledge.
Similarly, a White House teleprompter operator allegedly made over $100,000 on Kalshi by using advance knowledge of the president’s speeches to place bets. These incidents highlight the potential for abuse in markets that rely on non-public information, even when rules prohibit insider trading.
Safety risks and legal implications
FlightAware’s lawsuit goes beyond financial damages, arguing that flight cancellation betting markets could be manipulated to interfere with flight operations, posing a safety risk for travelers and airport employees. The company is seeking a jury trial, though it has not specified the amount of damages it is pursuing.
The case raises broader questions about the legality of prediction markets and their use of third-party data. While Kalshi operates under a federal regulatory framework that allows certain event contracts, the unauthorized use of proprietary data could constitute a separate legal violation.
Legal experts note that this lawsuit could set a precedent for how prediction markets source and use data. If FlightAware succeeds, it may force platforms like Kalshi to secure explicit licensing agreements with data providers before launching new markets.
For travelers and industry observers, the outcome of this case will be closely watched. If prediction markets on flight cancellations are allowed to continue, they could become a new tool for hedging against travel disruptions—but the safety and integrity concerns raised by FlightAware will likely remain at the center of the debate.
This article is for informational purposes only and does not constitute financial advice. Prediction markets are volatile and uncertain, and readers should conduct their own research before participating.
