FlightAware sues Kalshi over flight cancellation betting markets

FlightAware filed a lawsuit in New York against prediction market platform Kalshi, alleging the unauthorized use of its data and trademarks to facilitate betting markets on flight cancellations. FlightAware claimed Kalshi used its branding and identified it as a ‘Primary Source Agency’ to settle bets, despite cease-and-desist letters and terms of use prohibiting commercial data use for gambling. The flight-tracking company expressed concerns that such markets could create financial incentives to intentionally disrupt air travel.

Within 24 hours of the filing, FlightAware voluntarily dismissed the lawsuit without prejudice. While Kalshi’s flight-cancellation markets remain active, the platform has removed FlightAware’s name, instead using the generic term ‘Primary Source Agency’ with a link to the tracker’s website.

Separately, Kalshi is expanding its institutional infrastructure. The company has partnered with DoubleZero to stream real-time order book data for sports and crypto contracts and has entered a multiyear agreement with Nasdaq to deploy market surveillance technology. These moves aim to enhance market integrity and detect potential manipulation or insider trading as the platform faces increased regulatory scrutiny.