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FlightAware drops Kalshi lawsuit over flight-cancellation prediction market
The case was dismissed without prejudice one day after it was filed in New York, and Kalshi data shows the flight-cancellation series has drawn low liquidity, with 31,412 contracts traded through the Aug. 14 closing date.
FlightAware has voluntarily dismissed its one-day-old lawsuit against prediction markets platform Kalshi over Kalshi allegedly using FlightAware flight data and its trademark to power flight-cancellation bets, according to CoinDesk. The dismissal was filed in U.S. District Court for the Southern District of New York on Tuesday, without prejudice, leaving open the possibility that FlightAware could refile.
CoinDesk reports FlightAware did not provide reasons for the pullback in the court filing. The dispute raised a novel question about whether prediction markets can rely on third-party data and trademarks without a commercial agreement, even as Kalshi faces other regulatory and legal challenges in multiple states.
The report says the withdrawal comes amid social media backlash tied to concerns about incentives for malicious flight disruptions, along with relatively low retail interest in Kalshi’s aviation-related contracts. Fortune reported in July that Kalshi paused flight cancellation contracts after users raised worries that bad actors could cause disruptions to collect payouts.
CoinDesk cites Kalshi data showing the flight-cancellation bet open until Aug. 14 has seen 31,412 total contracts traded, with $1,842.48 in aggregate dollar volume and 1,120 contracts in open interest. The same data indicates that, year to date, Kalshi has traded $148 billion in volume overall, highlighting the stark contrast between the niche aviation market and the broader platform.