FlightAware Sues Kalshi Over Unauthorized Flight Data Usage

The dispute centers on a series of markets Kalshi launched last month allowing users to trade on the cancellation status of specific flights. According to the complaint filed Monday, Kalshi marketed these contracts as being verified by FlightAware without securing permission or notifying the company. FlightAware asserts this practice falsely implies a commercial partnership, damaging its reputation in the aviation industry while exposing it to public backlash over the ethics of betting on travel disruptions.

Beyond claims of trademark infringement and breach of contract, FlightAware argues that allowing traders to profit from flight cancellations creates dangerous incentives. While Kalshi excludes payouts for malicious security incidents, the plaintiff contends that the mere existence of these markets could encourage efforts to disrupt flight schedules. The lawsuit seeks a temporary restraining order and permanent injunctions to block Kalshi from using its data or brand. This legal challenge complicates an already difficult landscape for Kalshi, which is currently embroiled in multiple state-level disputes regarding the legality of its prediction markets and their alignment with federal derivatives oversight versus local gambling regulations.