FlightAware, a company that offers real-time status and information about flights globally, filed a lawsuit against Kalshi in a New York federal court over the prediction markets platform using its “data and name to run gambling markets on flight cancellations.” Example of flight cancellation event contract citing FlightAware data. Source: KalshiThe FlightAware lawsuit, while based on trademark infringement, breach of contract, injury to its reputation and unfair competition, is just the latest legal entanglement prediction markets like Kalshi and Polymarket face. Lawsuit highlights ’incentives for manipulation’ on prediction marketsThe FlightAware lawsuit included language pointing out the potential for manipulation among prediction market contracts in which participants have knowledge about events before they become public. FlightAware said that by Kalshi allowing event contracts on flight cancellations, there was not only the potential for manipulation, but also threats to passenger safety.