FlightAware sues Kalshi over flight-cancellation prediction markets
FlightAware sued Kalshi on Tuesday, August 11, alleging the prediction market platform used the flight tracker's proprietary data and brand without permission to offer event contracts on flight cancellations. The lawsuit claims Kalshi leveraged FlightAware's name and underlying flight information to create and promote the aviation betting markets. Kalshi had notified federal regulators of its intent to offer the contracts before the suit was filed.
FlightAware's suit opens a private-plaintiff front that Kalshi's federal preemption defense does not reach. Trademark and trade-secret claims sit outside the CFTC-state gambling fights Milbank is already managing across Wisconsin, Utah, and New York. An injunction here would freeze a live product vertical rather than force a slow geofence.
Kalshi's settlement infrastructure depends on real-time data partnerships. A loss forces renegotiation or redesign of feeds that underpin the aviation contracts. Other data vendors are watching. A FlightAware win would invite similar suits from any provider whose feeds back an event contract.
FlightAware's suit becomes the fourth distinct legal front Kalshi faces in under a week, alongside state actions from New York's attorney general, a Wisconsin judge's preemption rejection, and a $36 billion New York damages claim.