Flight Data Giant Sues Prediction Market

FlightAware, a prominent flight tracking and data provider, has initiated legal proceedings against the prediction market platform Kalshi. The lawsuit, filed in New York, seeks a permanent injunction and damages, alleging Kalshi has been using FlightAware's proprietary data and name without permission to run gambling markets.

FlightAware asserts that it was never informed of Kalshi's intentions to utilize its data or trademark. The company claims Kalshi continued this practice despite receiving a cease-and-desist letter. FlightAware discovered Kalshi's activities when media outlets began inquiring about the platform's use of its data.

Kalshi began offering prediction markets on flight cancellation rates in July 2026, verifying information with data from FlightAware and the US Department of Transportation. At the time, FlightAware issued a statement clarifying that no company was authorized to use its data for such purposes and threatened account termination for violations.

Beyond alleged violations of its terms of use and trademark, FlightAware expressed concerns echoed by the airline industry. They fear that prediction markets for flights could incentivize the mass disruption of air travel, driven by individuals seeking to profit from the platform.

Kalshi has implemented measures like insider trading rules and restrictions on certain individuals betting on specific markets to mitigate such behavior. However, several states still consider Kalshi's operations as gambling. The Commodity Futures Trading Commission, Kalshi's regulator, has opposed some efforts to control the platform, with New York's current lawsuit posing a significant test.