FlightAware Sues Kalshi Over Data Use in Prediction Markets

Flight-tracking service FlightAware has filed a lawsuit against prediction markets platform Kalshi, alleging unauthorized use of its data and name. The suit concerns Kalshi’s markets allowing customers to bet on flight-cancellation risk.

What Happened

FlightAware is suing prediction markets platform Kalshi, accusing the company of utilizing its data and name to operate what it terms “gambling markets on flight cancellations” without explicit permission, according to The Globe and Mail. Kalshi had announced these markets in July, enabling customers to engage in prediction on flight-cancellation risk (The Globe and Mail).

The lawsuit states that Kalshi identified FlightAware as the primary source agency for the settlement of these markets, but FlightAware reportedly did not authorize the use of its name, data, or trademarks for this purpose. Lawyers for FlightAware allege that Kalshi’s unauthorized use led customers to assume FlightAware’s involvement in the scheme (The Globe and Mail).

Key Details

• FlightAware filed its complaint in the U.S. District Court for the Southern District of New York on Monday, as reported by The Globe and Mail.
• Kalshi announced its markets for betting on flight-cancellation risk in July (The Globe and Mail).
• Concerns were raised that these markets could create financial incentives for disruption of air travel or airport closures, according to The Globe and Mail.
• A contract identified as “U.S. flight cancellations for the week ending at 5 p.m. EDT on 8/14” was reportedly available on Kalshi’s website, with the listing stating, “Outcome verified from FlightAware” (The Globe and Mail).
• FlightAware is seeking unspecified damages and court orders to prevent Kalshi from using its data and name, in addition to requesting a jury trial (The Globe and Mail).

Why It Matters

This lawsuit highlights regulatory and operational challenges within the burgeoning prediction market sector, particularly concerning data sourcing and intellectual property rights in regulated financial-like products. The dispute underscores the importance of explicit authorization for data use, especially when such data is integral to the settlement of financial contracts (The Globe and Mail). The controversy also touches upon broader concerns regarding the potential for financial markets based on real-world events, such as flight cancellations, to inadvertently create adverse incentives, as reported by The Globe and Mail.

Originally reported by The Globe and Mail·Published 11 Aug 2026, 11:11