FlightAware Sues Kalshi Over Unlicensed Use of Flight Data in Betting

FlightAware Takes Legal Action Against Kalshi

Flight tracking company FlightAware has initiated a lawsuit against Kalshi, targeting its flight-cancellation prediction markets that utilize FlightAware’s data without authorization. The lawsuit, filed on August 11, 2026, seeks court orders to prevent Kalshi from using its data and brand in relation to these contracts.

Allegations of Unauthorized Use

In the complaint, FlightAware accuses Kalshi of exploiting its flight-tracking information to operate prediction markets, which allow users to bet on the likelihood of individual flights being canceled. FlightAware claims it was not informed that its data would be used to determine the outcomes of these markets, creating a misleading impression of a close commercial relationship between the two companies.

Concerns Over Safety and Reputation

FlightAware argues that these markets generate incentives for unsafe actions, potentially influencing flight cancellations. Although Kalshi has stated that it will not provide payouts for cancellations resulting from malicious acts or security issues, the lawsuit claims such contracts could still lead to risks associated with affecting scheduled flights.

Legal Basis of the Lawsuit

FlightAware’s legal claims include breach of contract, trademark infringement, and unfair competition. The company is requesting a temporary restraining order as well as both preliminary and permanent injunctions to halt Kalshi’s use of its services and brand in connection with the flight-cancellation markets.

Background of Kalshi’s Legal Challenges

This lawsuit is an addition to the ongoing legal challenges faced by Kalshi. The platform is already involved in several cases concerning whether its contracts may be classified as gambling under state laws. Recently, New York Attorney General Letitia James and Governor Kathy Hochul filed a lawsuit against Kalshi, alleging that it is running an unlicensed gambling operation.

Conflicting Regulations and Future Implications

As Kalshi navigates these disputes, it contends that its event contracts should be governed by federal derivatives oversight rather than state gambling regulations. The evolving landscape poses a significant challenge for Kalshi as it continues to expand its offerings into various sectors beyond traditional financial events.