Flight Tracking Service Files Lawsuit Against Kalshi for Unauthorized Use of Data

FlightAware, a company specializing in flight tracking and data analytics, has initiated legal action against Kalshi for allegedly utilizing its data and trademark for gambling activities without authorization. The lawsuit was lodged in New York, coinciding with an ongoing case against Kalshi by New York Attorney General Letitia James for purported illegal gambling practices.

In its complaint, FlightAware asserts that it was not made aware of Kalshi’s intent to employ its data or name. Despite sending a cease-and-desist notice, Kalshi continued its operations, prompting FlightAware to seek damages alongside a permanent injunction to forbid further use of its data.

Kalshi has yet to respond to requests for commentary regarding the lawsuit from various media outlets. Should the company provide a statement, updates will follow.

In July 2026, Kalshi introduced a betting platform allowing users to wager on the likelihood of flight cancellations at particular airports within designated timeframes. The company indicated that it was corroborating its cancellation data with FlightAware and the US Department of Transportation. However, FlightAware promptly clarified that such usage was not sanctioned, stating, “No company is — or will be — authorized to use the data collected through the FlightAware network for this purpose.” They further warned that accounts violating their terms would be terminated.

According to the lawsuit, FlightAware only became aware of Kalshi’s data usage when inquiries from the press began to surface. Upon realizing Kalshi planned to activate prediction markets relying on “verified data from FlightAware,” the company issued its cease-and-desist letter. FlightAware also resonated with concerns raised by the airline sector, which argues that these prediction markets could encourage disruptions in air travel for financial gain.

To mitigate potential misuse, Kalshi has implemented certain policies, such as verifying user employment for specific bets and prohibiting politicians and athletes from wagering on elections and sporting events. Despite this, there remains a perception in many states that Kalshi operates as a gambling platform. The Commodity Futures Trading Commission (CFTC), which oversees Kalshi, has managed to counter some regulatory attempts, but the ongoing lawsuit in New York will present a significant challenge for the platform.