FlightAware drops Kalshi suit over flight-cancellation markets as state fights continue
FlightAware dropped its lawsuit against Kalshi over flight cancellation prediction markets shortly after filing it, following unspecified wording changes by Kalshi. The suit had accused Kalshi of improperly using FlightAware data and trademarks. The dismissal leaves Kalshi's broader legal fight with multiple states untouched. Arizona criminal charges against Kalshi were blocked in May 2026. Kalshi is defending against separate state actions seeking to limit its sports event contracts under local gambling laws.
The rapid dismissal means Kalshi avoids a parallel federal trademark front while state courts keep tearing at its preemption shield. Each state that rejects CFTC registration as a gambling-law shield forces Kalshi to choose: build expensive geofences or let contracts void locally. The Nevada ruling joins Washington, Michigan, Wisconsin, New York, Utah, and Connecticut in that camp.
Legal spend compounds across these cases. Traders now hold contracts whose validity shifts with state borders, not federal designation alone. Rivals Polymarket and Novig face identical exposure, but Kalshi's higher profile makes it the test case attorneys general target first. Every state win emboldens the next filing.