Flight-tracking company FlightAware has sued prediction-market operator Kalshi, accusing the service of using its data and trademark without permission to settle wagers on US flight cancellations.
The lawsuit, filed in US District Court for the Southern District of New York, alleges Kalshi used FlightAware data in prediction markets that allow users to wager money on how many flights will be canceled in a given period of time.
FlightAware is seeking a temporary restraining order and permanent injunction to stop Kalshi from using its data and brand in connection with the markets.
The dispute flared up in July 2026, when Kalshi disclosed plans for contracts tied to the percentage of flights canceled at airports during specified periods. Kalshi said in a filing with the Commodity Futures Trading Commission (CFTC) that FlightAware data would be used to determine the outcome of the contracts, with US Department of Transportation data serving as a backup.
FlightAware immediately objected to the plan. RTX, FlightAware’s parent company, said at the time that FlightAware was not involved with any prediction markets and that no company was authorized to use data collected through its network for that purpose.
Kalshi initially paused plans for the flight-cancellation contracts following the objections, but later offered cancellation markets using FlightAware information, according to the lawsuit and published reports.
FlightAware alleges it repeatedly sent cease-and-desist demands to Kalshi but that the company continued using its data and referring to FlightAware on its website. Kalshi later added a disclaimer stating that FlightAware was not affiliated with or endorsing the markets.
The lawsuit also raises a broader concern about allowing people to profit from disruptions to air travel. FlightAware argues that markets tied to flight cancellations could create incentives for people to interfere with airline or airport operations to influence the outcome of a contract.
The issue surfaced after Kalshi first proposed the contracts in July, when critics questioned whether someone could deliberately cause disruptions at an airport and then profit from cancellation bets.
Kalshi operates a federally regulated prediction market where users trade contracts based on whether future events will occur. The company has expanded rapidly into areas including politics, economics and sports.
Prediction markets are overseen in the US at the federal level by the CFTC, but Kalshi has also faced challenges from states that argue some of its contracts amount to gambling that should be regulated under state law.