FlightAware withdraws lawsuit against Kalshi one day after filing

FlightAware voluntarily dismissed its federal trademark and breach of contract lawsuit against prediction market Kalshi on August 11, 2026, just one day after filing. The lawsuit accused Kalshi of using FlightAware's flight-tracking data under an unauthorized personal license to run commercial flight-cancellation betting markets. Following the filing, Kalshi scrubbed FlightAware's name from its platform, replacing it with "Primary Source Agency." The swift dismissal without prejudice suggests a private settlement, leaving broader legal questions unanswered as Kalshi continues to battle a $36 billion lawsuit from New York and regulatory restrictions in multiple states.

FlightAware lawsuit withdrawal

• ▪FlightAware dismissed its lawsuit against Kalshi without prejudice, allowing the flight-tracking platform to refile its claims in the future
• ▪Corporate lawyer Ariel Givner commented on X that FlightAware dropping its lawsuit so quickly after demanding a temporary restraining order typically indicates the parties reached a private agreement
• ▪FlightAware voluntarily dismissed its federal lawsuit against Kalshi in the U.S. District Court for the Southern District of New York on August 11, 2026, just one day after filing

Kalshi flight cancellation markets

• ▪Kalshi and Polymarket collectively controlled over 90% of prediction market volume, generating more than $90 billion in second-quarter 2026 notional volume, according to a report by Predicted
• ▪Kalshi's flight-cancellation contracts open until August 14, 2026, recorded only 31,412 total contracts traded, representing $1,842.48 in aggregate dollar volume and 1,120 contracts in open interest
• ▪Kalshi revised its flight-cancellation market pages to replace references to "FlightAware" with "Primary Source Agency," while maintaining a hyperlink to FlightAware's website

Data licensing dispute

• ▪FlightAware canceled Kalshi's Personal AeroAPI account on July 15, 2026, one day after Kalshi named FlightAware as its "Primary Source Agency" in a CFTC filing
• ▪FlightAware alleged that Kalshi accessed its flight data through a free Personal AeroAPI account registered on July 14, 2022, which prohibited commercial use

Trademark infringement claims

• ▪Kalshi denied violating FlightAware's license or infringing its trademark, asserting that its references to FlightAware constituted nominative fair use
• ▪FlightAware's lawsuit accused Kalshi of federal trademark infringement, breach of contract, injury to reputation, and unfair competition over the unauthorized use of its flight data and brand

Market manipulation concerns

• ▪FlightAware argued that prediction markets wagering on flight delays or cancellations incentivize participants to interfere with air travel or cause flight cancellations to profit from their bets
• ▪FlightAware's lawsuit highlighted potential prediction market manipulation, citing a U.S. soldier who allegedly bet on the removal of Venezuelan President Nicolás Maduro using nonpublic military information

State regulatory challenges

• ▪New York filed a lawsuit against Kalshi seeking at least $36 billion, alleging that the prediction market platform operates an unlicensed, illegal gambling business
• ▪Courts in Washington and Michigan restricted Kalshi's sports-event contracts, while a federal judge blocked Minnesota from enforcing its state ban on prediction markets