FlightAware accuses Kalshi of violating data usage agreements and trademark rules to facilitate gambling on U.S. flight disruptions.
Flight-tracking platform FlightAware filed a lawsuit against prediction market Kalshi, alleging unauthorized use of its flight data and logo to enable betting on flight cancellations. The suit, filed in New York, seeks damages and an injunction to halt Kalshi’s operations tied to FlightAware’s proprietary information.
Kalshi began offering bets on nationwide and local flight cancellations on July 14, allowing users to wager on the percentage of canceled flights during specific periods. FlightAware claims Kalshi breached a prior agreement restricting commercial use of its data and ignored a cease-and-desist letter, citing “fair use” as justification.
The lawsuit also raises concerns that betting on cancellations could create safety risks by incentivizing individuals to influence flight delays. Kalshi added a disclaimer stating its services are not endorsed by FlightAware, but the legal action marks the latest in a series of regulatory challenges for the prediction market.