At a glance
The New York City Council opened an investigation into how prediction market platforms are marketing their services. The move came after FlightAware sued Kalshi over flight-cancellation prediction markets, then dropped the case within a day.
The New York City Council opened an investigation into how prediction market platforms market their services after FlightAware sued Kalshi over flight-cancellation prediction markets, then dropped the suit within a day. The timing of the dropped lawsuit raised questions.
FlightAware sued Kalshi, then withdrew the case almost immediately — suggesting either a settlement or pressure from above. NYC is now investigating whether prediction market platforms are operating as unregistered gambling or investment platforms. The dropped suit and the investigation suggest someone wanted the legal challenge to disappear, which made regulators curious about why.
Citation trail
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