FlightAware, the aviation data and flight-tracking firm, has filed a lawsuit against prediction market platform Kalshi, accusing the company of using its proprietary data and trademark without authorization to settle wagers on flight cancellations.
The Allegations
According to the complaint, FlightAware claims Kalshi tapped into its flight-tracking information to determine the outcomes of contracts tied to whether specific flights would be canceled or delayed. The tracking company argues that this use of its data occurred without any license or permission, forming the backbone of a betting product it never sanctioned.
The suit also raises a trademark issue, alleging that Kalshi improperly referenced or displayed FlightAware's brand in connection with these markets. FlightAware contends that associating its name with gambling-style contracts could mislead consumers and damage its reputation as a neutral aviation data provider.
A company that tracks planes says its data was used to fuel bets it never agreed to.
Kalshi Under Pressure
The lawsuit adds to a growing list of legal and regulatory challenges facing Kalshi, which has expanded aggressively into event-based prediction markets covering everything from elections to sports and now travel disruptions. Each new category tends to attract scrutiny from regulators, competitors, or the entities whose outcomes are being wagered on.
Prediction markets rely heavily on trusted external data sources to settle contracts fairly. When those sources are third-party companies, disputes over licensing, attribution, and intellectual property can quickly follow, as the FlightAware complaint illustrates.
Key issues in the dispute include:
- Alleged unauthorized use of FlightAware's flight data to resolve contracts
- Claims of trademark infringement tied to the company's brand
- Questions about how prediction platforms source and license settlement data
The case could set an early precedent for how prediction markets handle the data feeds that underpin their offerings, particularly as platforms branch into increasingly niche event categories. Kalshi has not publicly detailed its response to the claims.