FlightAware Sues Kalshi Over Unauthorized Use of Flight Data

Kalshi added a disclaimer to the markets stating they were not endorsed by FlightAware, but the flight tracker argues that step did not resolve the underlying problem.

Ziv Chen

Last updated: August 12, 2026 7:32 AM EDT • 2 min read

Pictured: An airplane lands as we look at FlightAware suing Kalshi. Photo by USA TODAY Network via Reuters Connect

Enjoying SBR content? Add us as a preferred source on your Google account

Flight-tracking company FlightAware has filed a federal lawsuit against Kalshi, accusing the prediction market operator of using its data and brand without permission to run wagers on airline cancellations. The complaint, filed on Monday in the US District Court for the Southern District of New York, names four Kalshi entities and alleges breach of contract, trademark infringement under the Lanham Act, and unfair competition.

According to the filing, a Kalshi employee created a free FlightAware account in July, and the company then filed paperwork with the Commodity Futures Trading Commission (CFTC) to offer contracts letting users bet on the share of flights canceled at specific airports, naming FlightAware as the source used to settle results. FlightAware says this happened without its knowledge or consent, leaving the public assuming the two companies had a formal partnership.

Kalshi added a disclaimer to the markets stating they were not endorsed by FlightAware, but the flight tracker argues that step did not resolve the underlying problem, since Kalshi kept referencing FlightAware data to determine outcomes. FlightAware also contends that tying payouts to cancellations creates a financial incentive for bad actors to interfere with flight operations, posing a threat to passenger safety.

Kalshi had already paused plans to launch the cancellation contracts in mid-July following public criticism. The company has identified the US Department of Transportation data as a possible alternative source for settling similar contracts going forward. FlightAware is seeking injunctions barring Kalshi from using its data or trademark, along with unspecified damages and a jury trial.

Connecticut court also rules against Kalshi

The FlightAware suit lands as Kalshi faces mounting legal pressure on a separate front, with a federal judge in Connecticut denying the company's bid to halt state enforcement of its sports-related event contracts.

US District Judge Vernon Oliver ruled that Kalshi's sports contracts do not meet the definition of a swap under the Commodity Exchange Act because they hinge on in-game outcomes rather than whether an event occurs at all. Oliver also found that even if the contracts qualified as swaps, federal law would not override Connecticut's authority to regulate sports wagering, an area the CFTC has not historically overseen.

Kalshi sued Connecticut's attorney general and its Department of Consumer Protection in December after the agency issued cease-and-desist orders to numerous prediction market apps , including Kalshi, Crypto.com, and Robinhood. The company argued federal law preempts the state's gambling statutes, a position Oliver rejected, noting Kalshi offered no clear reason it could not simply apply for a state gaming license.

The Connecticut decision extends a losing streak for Kalshi in similar disputes. The company has been denied preliminary injunctions in Michigan, Nevada, New York, Utah and Washington since late June, with Michigan and Nevada ordering the company to block access to its sports contracts by August 12.

Written By:
Ziv Chen

Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.