Kalshi faces lawsuit from FlightAware over flight data use, case dropped a day later

FlightAware, the aviation data giant owned by Collins Aerospace (a Raytheon subsidiary), filed a lawsuit against prediction market platform Kalshi on August 10, accusing the company of improperly using its flight data, trademarks, and branding. Two days later, FlightAware voluntarily dismissed the case without prejudice.

No settlement was reported. No explanation was given.

What FlightAware alleged

The suit, filed in US District Court for the Southern District of New York as case 1:26-cv-06824, included claims of breach of contract and federal trademark infringement. FlightAware argued that Kalshi had violated an existing data license agreement that explicitly prohibited any use of its data for commercial or gambling activity.

The dispute centered on Kalshi’s flight cancellation betting markets, which launched in early July 2026. These contracts let users wager on cancellation volumes at various US airports, and according to FlightAware, they referenced FlightAware’s branding without authorization.

FlightAware said it first learned about the markets through media reports, not from Kalshi directly. The company claimed it never granted permission for its data or brand to appear in a speculative betting context, and that Kalshi failed to shut down the markets even after being asked to do so.

FlightAware sought damages and a temporary restraining order.

The two-day lawsuit

On August 12, FlightAware voluntarily dismissed the case without prejudice. That legal term matters: “without prejudice” means FlightAware retains the right to refile the same claims in the future.

The bigger picture for prediction markets

Kalshi is a regulated prediction market exchange launched by MIT graduates in 2018. The platform has spent years positioning itself as a regulated exchange for event contracts, winning a landmark legal battle against the CFTC in 2023 that allowed it to list contracts on US congressional elections.

The FlightAware dispute exposes a tension in prediction market growth: these platforms depend on third-party data to resolve contracts, and data providers may not support how their information gets used. FlightAware’s license agreement reportedly contained an explicit prohibition on gambling-related use, suggesting the data provider anticipated this scenario.

Critics of prediction markets have warned about perverse incentives. When someone can profit from a flight cancellation, the potential for financial profit could incentivize disruptive actions by stakeholders in the industry.

FlightAware’s decision to dismiss without prejudice keeps the legal door open. As of August 12, no settlement had been reached and no related litigation was underway.

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