FlightAware Sues Kalshi Over Alleged Misuse of Data for Betting Markets

Flight tracking company FlightAware has filed a lawsuit against prediction markets platform Kalshi, accusing it of improperly using its data and branding to operate betting markets tied to flight cancellations. According to the filing, Kalshi launched markets last month allowing users to bet on cancellations, citing FlightAware as the source for verifying outcomes, without informing the company beforehand. FlightAware said this has damaged its reputation and led customers to mistakenly believe it was involved in the betting activity.

Safety Concerns Raised Alongside Legal Claims

Beyond the data dispute, FlightAware argued the markets pose broader safety risks, warning they could strand travelers, disrupt airline operations, and potentially create incentives for unsafe behavior affecting flight schedules. The lawsuit includes claims of breach of contract, trademark infringement, and unfair competition, with FlightAware seeking a temporary restraining order along with preliminary and permanent injunctions to stop Kalshi from using its data and name.

Part of Kalshi’s Growing Legal Challenges

This case adds to a series of legal battles facing Kalshi, which has faced lawsuits and restraining orders from multiple states over its sports-related prediction markets, including recent actions in New York, Washington, and Michigan. Minnesota remains an exception after a judge blocked enforcement of a state ban there. Meanwhile, the Commodity Futures Trading Commission has sued several states in an effort to establish federal authority over the prediction markets industry amid the ongoing jurisdictional disputes.