FlightAware sues Kalshi over unauthorized use of flight data in prediction markets

FlightAware has filed a lawsuit against prediction market platform Kalshi, alleging unauthorized use of its flight-tracking data and brand to settle flight-cancellation contracts. FlightAware claims the markets create dangerous incentives for individuals to disrupt aviation operations to win payouts. The lawsuit adds to Kalshi's mounting legal challenges, which include a $36 billion unlicensed gambling lawsuit from New York State and regulatory battles over state versus federal jurisdiction.

FlightAware lawsuit against Kalshi

• ▪FlightAware filed a lawsuit against Kalshi on Monday, August 10, 2026, accusing Kalshi of using FlightAware's flight-tracking data without permission to settle prediction markets.
• ▪In its lawsuit filed on August 10, 2026, FlightAware is seeking a temporary restraining order and injunctions to stop Kalshi from using FlightAware's services and brand.

Unauthorized flight data usage

• ▪FlightAware stated in its August 10, 2026 lawsuit that Kalshi never informed FlightAware or obtained permission to use FlightAware's data to determine betting market outcomes.
• ▪In July 2026, Kalshi introduced prediction markets allowing users to trade on flight cancellations, telling users that contract outcomes are verified using FlightAware's data.

Trademark infringement claims

• ▪FlightAware's August 10, 2026 lawsuit accuses Kalshi of breach of contract, trademark infringement, and unfair competition.
• ▪FlightAware alleges that Kalshi's use of FlightAware's name in the verification process falsely implied that FlightAware approved or participated in Kalshi's prediction markets.

Flight cancellation market safety

• ▪While FlightAware's lawsuit does not allege any successful flight interference, it argues that financial payouts depending on flight cancellations create dangerous real-world incentives.
• ▪FlightAware's lawsuit argues that Kalshi's flight-cancellation contracts create safety risks by incentivizing unsafe attempts to disrupt airline operations and influence flight cancellations.

State gambling law disputes

• ▪A Washington judge issued a preliminary injunction on July 21, 2026, restricting Kalshi's sports contracts after finding state gambling laws could apply.
• ▪New York Attorney General Letitia James and Governor Kathy Hochul sued Kalshi on July 31, 2026, seeking at least $36 billion for operating an unlicensed gambling business.
• ▪On August 6, 2026, U.S. District Judge Shalina Kumar denied Coinbase Financial Markets' request to block Michigan officials from enforcing state sports-betting laws.

Federal-state jurisdiction conflict

• ▪The Commodity Futures Trading Commission asserts federal jurisdiction over registered prediction-market exchanges, conflicting with states seeking to apply local gambling laws.
• ▪U.S. District Judge Katherine Menendez blocked enforcement of Minnesota's prediction-market ban on July 27, 2026, protecting CFTC-registered markets during ongoing litigation.

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