Flight tracking service FlightAware has filed a lawsuit against prediction market platform Kalshi, accusing it of improperly using FlightAware’s data and brand to operate markets on flight cancellations. The complaint, lodged on Monday, alleges breach of contract, trademark infringement, and unfair competition after Kalshi launched contracts allowing users to bet on whether specific flights would be canceled.
According to the filing, Kalshi told users that contract outcomes are “verified from FlightAware,” creating the impression that the two companies had a close commercial partnership. FlightAware claims it never consented to this use of its data, and was not informed that its information would serve as the settlement source. The lawsuit states: “Kalshi never informed FlightAware that it would rely on FlightAware’s data to determine the outcome of these betting markets.”
Beyond the contractual dispute, FlightAware raised public safety concerns. It argued that financial incentives tied to flight cancellations could encourage dangerous attempts to disrupt air travel, strand passengers, and threaten aviation safety. The company noted widespread public outrage and fear that the markets might incentivize unsafe tactics.
FlightAware is seeking a temporary restraining order and permanent injunctions to stop Kalshi from using its data, services, or brand in connection with these prediction markets. The case adds to Kalshi’s mounting legal challenges, including lawsuits from New York, Washington, and Michigan over whether its sports-event contracts violate state gambling laws. Meanwhile, the CFTC has sued several states to assert federal jurisdiction over prediction markets, intensifying the regulatory battle.
