Overview
- FlightAware sued Kalshi in federal court on Monday, August 11, accusing the prediction‑market operator of using its flight data, name and trademarks without permission to settle bets on airline cancellations and seeking injunctions and damages.
- The company alleged breach of contract, trademark infringement and unfair competition and warned that cancellation markets could create financial incentives to disrupt air travel and harm FlightAware’s reputation.
- Kalshi quickly changed its market pages by removing explicit “verified from FlightAware” wording, replacing it with a “Primary Source Agency” label and a disclaimer denying endorsement.
- FlightAware voluntarily dismissed the Southern District of New York case without prejudice on Tuesday, August 12, so it can sue again if it chooses and no public settlement has been disclosed.
- The episode highlights a wider legal fight over prediction markets: platforms depend on third‑party data that often carries license limits, Kalshi faces parallel state suits including New York’s high‑value complaint, and courts remain split on federal preemption versus state gambling rules.