FlightAware Sues Kalshi Over Unauthorized Flight Data Use in Prediction Markets

FlightAware has sued Kalshi in federal court, accusing the prediction market of using its flight data without permission. The lawsuit adds another challenge to Kalshi’s rapidly expanding event-contract business. 

FlightAware argues that Kalshi’s flight-cancellation markets could also expose its brand to reputational and safety risks. The company filed the case Monday in New York’s Southern District.

Data Dispute Escalates

FlightAware claims Kalshi continued using its registered trademark despite repeated requests to stop. Additionally, the prediction platform reportedly promoted contracts using FlightAware’s data to verify flight cancellations. The company also alleges trademark infringement, breach of contract, unfair competition, and reputational damage.

However, FlightAware’s concerns extend beyond intellectual property rights and commercial disputes. The company argues that cancellation markets could create financial incentives for people to disrupt flights. Moreover, aviation workers could face incentives to influence operational decisions for financial gain.

Prediction Markets Face Scrutiny

The lawsuit arrives as regulators and state authorities increasingly challenge prediction markets over gambling concerns. Consequently, Kalshi and Polymarket face growing legal pressure surrounding their event contracts.

Significantly, prediction markets have expanded rapidly, attracting billions of dollars in trading volume. A Q2 2026 report estimated that Kalshi and Polymarket controlled more than 90% of prediction-market volume. Their combined notional trading volume reportedly exceeded $90 billion during the quarter.

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