FlightAware, a flight tracking data provider, has filed a lawsuit against prediction market platform Kalshi for allegedly using its data and trademark without permission to run gambling-style markets on flight cancellations. The company says it never authorised Kalshi's use of its data, only learned of the arrangement when journalists sought comment, and continued cease-and-desist efforts before resorting to legal action. The case adds to mounting legal pressure on Kalshi, which is separately being sued by New York Attorney General Letitia James over claims it operates an illegal gambling business.

FlightAware is seeking damages and a permanent injunction barring Kalshi from using its data, citing breach of its terms of use, trademark infringement and reputational harm. Kalshi launched markets in July 2026 allowing bets on flight cancellation rates at airports, claiming to verify outcomes using FlightAware and US Department of Transportation data, despite FlightAware publicly stating no company was authorised to use its data this way. FlightAware also echoes airline industry concerns that such markets could incentivise deliberate disruption of air travel for profit, while Kalshi maintains safeguards such as insider-trading rules and bans on politicians and athletes betting on related events. The Commodity Futures Trading Commission regulates Kalshi and has previously resisted state-level challenges, but the New York lawsuit poses a fresh test.