FlightAware Files Suit Against Kalshi Over Controversial Flight Betting Markets

FlightAware has brought a federal lawsuit against prediction-market operator Kalshi, claiming the platform used FlightAware’s proprietary flight data and trademark without authorization to settle contracts linked to flight cancellations.

The case was filed Monday in the U.S. District Court for the Southern District of New York. FlightAware is asking for damages and an injunction preventing Kalshi from continuing to use its data and logo.

FlightAware operates a large global flight-tracking platform. Kalshi began offering contracts on national and local flight cancellations on July 14, the same day it filed paperwork with the Commodity Futures Trading Commission (CFTC) to list the products as event contracts.

The contracts allow traders to speculate on what percentage of scheduled flights will be canceled within a particular period.

FlightAware alleges that Kalshi breached terms governing access to its data, which prohibit commercial use without authorization. The company said those restrictions applied to a paid AeroAPI account created by a Kalshi employee in 2022.

After receiving a cease-and-desist notice from FlightAware, Kalshi denied the allegations. The platform said it had not violated FlightAware’s data license or infringed its trademark and maintained that references to the company qualified as nominative fair use.

FlightAware said Kalshi later added a disclaimer to its website clarifying that FlightAware did not endorse the prediction markets. The company argues, however, that the disclaimer does not address the core dispute because Kalshi continued to indicate that FlightAware’s data would be used to determine the outcome of its contracts.

The complaint also highlights potential safety concerns. FlightAware argues that prediction markets tied to flight cancellations could create financial incentives for participants to influence flight operations or deliberately affect whether flights are delayed or canceled.

According to the filing, Kalshi has identified flight information from the U.S. Department of Transportation as a potential alternative source for settling its contracts.

The lawsuit arrives as Kalshi faces additional legal challenges over its prediction-market business. New York sued the company last month, alleging that it was offering sports and event wagers without a state gaming license. Similar cases involving Kalshi and other prediction-market operators have also been filed in Wisconsin and Nevada.

FlightAware’s case raises a separate legal question: whether prediction-market platforms can use another company’s proprietary data and trademark to settle contracts without first obtaining a commercial agreement or license.