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.)
