Flight tracking company FlightAware has filed a lawsuit against prediction market platform Kalshi, accusing the company of using its flight data and brand name without permission in connection with flight-cancellation prediction markets.
According to the lawsuit, FlightAware claims Kalshi relied on its flight-tracking information to settle contracts that allow users to bet on whether specific flights will be canceled. The company argues that it never authorized the use of its data for this purpose and was not informed in advance that its information would be used to determine payouts for traders.
FlightAware also alleges that Kalshi’s references to its data created the impression that the two companies had a business partnership or that FlightAware endorsed the prediction markets. The company says this has caused confusion among customers and raised concerns about its reputation.
As a result, FlightAware is seeking court orders that would prevent Kalshi from using its data and branding in connection with the disputed contracts. The lawsuit includes claims of breach of contract, trademark infringement, and unfair competition.
Beyond the data dispute, FlightAware raised concerns about the nature of the flight-cancellation markets themselves. The company argues that allowing people to profit from canceled flights could create incentives for individuals to attempt to influence flight operations, potentially causing disruptions for travelers and airlines.
While FlightAware did not claim that anyone has successfully interfered with a flight, it argued that the existence of financial incentives tied to cancellations raises safety and operational concerns.
The lawsuit adds another legal challenge for Kalshi, which has been involved in several disputes across the United States regarding prediction markets.
In recent months, multiple states have questioned whether some of Kalshi’s event-based contracts should be treated as gambling products rather than federally regulated financial contracts. The company is currently involved in legal battles with state regulators over sports-related prediction markets and other event contracts.
However, the FlightAware case is different from those disputes. Instead of focusing on gambling laws or regulatory oversight, the lawsuit centers on the alleged unauthorized use of proprietary data and trademarks.
FlightAware is asking the court to immediately stop Kalshi from using its information and brand while the case moves forward. The outcome could have broader implications for how prediction market platforms use third-party data sources to verify and settle contracts tied to real-world events.
For now, the dispute highlights growing legal and business challenges facing prediction market operators as they expand into new types of event-based trading products.
