FlightAware Sues Kalshi Over Unauthorized Data Use in Flight Betting
The flight-tracking service seeks an injunction to shut down prediction markets using its data to settle bets on cancellations.
FlightAware has filed a lawsuit against prediction market platform Kalshi, alleging the unauthorized use of its proprietary data and branding. The legal action, filed in the U.S. District Court for the Southern District of New York around August 10, 2026, seeks a jury trial and an immediate injunction to shut down betting markets tied to U.S. flight cancellations.
According to the filing, FlightAware claims that Kalshi utilized its name and real-time tracking data to determine the outcomes of financial bets without obtaining permission. FlightAware asserts that Kalshi never informed the company that its data would be used as the benchmark for these specific betting markets. The lawsuit alleges that this practice constitutes a direct violation of FlightAware's Terms of Service, which explicitly prohibit the use of its data for commercial or gambling purposes.
The Rise of Prediction Markets
Kalshi operates as a prediction market where users trade on the outcomes of future real-world events. While these platforms have grown in popularity as tools for hedging risk or speculating on political and economic trends, Kalshi recently expanded its offerings to include flight cancellation contracts. This expansion turned operational aviation data into a financial instrument, a move that FlightAware argues was done without a legal framework or a licensing agreement.
Industry Implications
This dispute underscores a growing tension between specialized data providers and the burgeoning prediction market industry. At the heart of the case is the legality of using third-party data to settle financial contracts. Beyond the intellectual property concerns, the case raises questions about the potential for real-world manipulation. When significant financial incentives are tied to operational disruptions—such as flight cancellations—there is a risk that the incentives could encourage interference with aviation operations, potentially creating safety risks for travelers and airport personnel.
What's Next
FlightAware is now pushing for the court to force Kalshi to dismantle the flight-related markets entirely. The outcome of the case will likely set a precedent for how prediction markets source their "truth" data and whether data providers can successfully block the financialization of their operational metrics. It remains to be seen if Kalshi will attempt to settle the matter through a licensing agreement or fight the injunction in court.