FlightAware sues Kalshi over bets on flight cancellations
FlightAware has sued the prediction market platform Kalshi for unauthorized use of its flight-tracking data and logo in betting contracts. The lawsuit raises questions about the legality of using third-party data for event-based prediction markets.
Why it matters
This case sets a legal precedent for how prediction markets can utilize proprietary data and whether such betting platforms pose safety or regulatory risks.
FlightAware, which operates the world’s largest flight-tracking platform, filed the suit in the U.S. District Court of the Southern District of New York on Monday, seeking damages and an injunction against further use of its data and logo.
Kalshi started offering bets on nationwide and local flight cancellations on July 14, the same day it submitted its regulatory filing to the Commodity Futures Trading Commission (CFTC) to list such event contracts. The contracts allow users to bet on the percentage of scheduled flights that would be canceled during a specific period.
FlightAware alleges Kalshi had agreed to terms barring commercial use of its data, including through a fee AeroApi account that a Kalshi employee registered for in 2022.
Kalshi responded to FlightAware's cease-and-desist letter, denying “it violated FlightAware’s license or infringed the FlightAware mark and asserted that its references to FlightAware constituted nominative fair use.”
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