TLDR
- FlightAware sued Kalshi in the U.S. District Court for the Southern District of New York on August 10.
- The lawsuit accuses Kalshi of using FlightAware’s data and name without permission for flight cancellation markets.
- FlightAware alleges breach of contract, trademark infringement, and unfair competition.
- Kalshi told traders that flight cancellation outcomes would be verified using FlightAware data, according to the complaint.
- FlightAware is seeking temporary, preliminary, and permanent injunctions to stop Kalshi from using its data in these markets.
FlightAware has sued Kalshi in New York federal court, seeking to stop flight cancellation contracts using its data and name. The flight tracking company says Kalshi relied on FlightAware information to settle contracts without permission and made users believe the companies had a business relationship.
The complaint, filed August 10 in the U.S. District Court for the Southern District of New York, names four Kalshi entities. FlightAware alleges breach of contract, trademark infringement, and unfair competition. It asks the court to block markets tied to its data.
Kalshi Faces Claims Over FlightAware Data
Kalshi listed contracts that allowed users to trade on airport flight cancellations. According to the complaint, the platform told traders that outcomes would be verified using FlightAware data. FlightAware says Kalshi never informed the company that its data would serve as the source for settling those markets.
FlightAware also claims Kalshi used its name in a way that suggested approval or cooperation. The RTX Corporation subsidiary says customers linked it to the contracts after launch. FlightAware argues that it did not support the markets or authorize Kalshi to present its data as the official source.
Flight Cancellation Markets Raise Safety Dispute
FlightAware raised concerns about how the contracts could affect air travel. The company says markets tied to cancellations could encourage attempts to disrupt flights, although Kalshi’s rules exclude payouts linked to malicious or security-related events.
Kalshi had paused plans for flight cancellation contracts on July 16 after public criticism and objections from FlightAware. The proposed markets covered airport-wide cancellations, while some airport workers, TSA staff, and union officials could not trade because of insider restrictions.
Legal Pressure Builds Around Prediction Markets
The FlightAware case adds to legal disputes involving Kalshi and state regulators. New York sued the company last month, alleging illegal gambling. Courts in Washington and Michigan have also restricted sports-related event contracts while legal cases continue.
Minnesota has taken a different path. A judge there allowed Kalshi and Polymarket to keep operating while the state challenges prediction markets. The CFTC has also entered the dispute, arguing that federal law should control regulation of event contracts.
FlightAware now wants the court to stop Kalshi from using its name or data in flight cancellation markets. Kalshi has not responded to the lawsuit, while the legal fight over prediction markets continues across several states.