FlightAware sued Kalshi on Monday in the U.S. District Court for the Southern District of New York, alleging the prediction market built flight cancellation betting pages on data it was never licensed to use commercially. The complaint names Kalshi Inc., KalshiEX LLC and two Kalshi Klear entities, demands a jury, and asks for a temporary restraining order plus preliminary and permanent injunctions.
Kalshi signed up for a free Personal AeroAPI account on July 14, 2022, according to the filing, under a license that permits personal use only and bars use “in furtherance of any business, whether for profit or otherwise.” Four years later, on July 14, 2026, Kalshi self-certified flight cancellation contracts with the CFTC and named FlightAware the “Primary Source Agency,” according to the complaint.
What the Betting Pages Said
According to the complaint, Kalshi’s markets told traders the outcome was “verified from FlightAware” and displayed the mark in bold, hyperlinked to FlightAware’s own site. FlightAware said in the filing that it learned of the markets “only when reporters called for comment,” adding that it cancelled the account on July 15, 2026 and that it sent a cease-and-desist letter. Kalshi later added a disclaimer saying the markets “have not been endorsed by FlightAware.” FlightAware said in the complaint that the disclaimer never told traders it had objected.
The Safety Theory
FlightAware, which tracks flights for more than 10,000 aircraft operators and service providers, also argues in the complaint that the markets create “an incentive for participants to interfere with air travel.” It pleads six counts, including breach of contract, federal trademark infringement under 15 U.S.C. § 1114(1) and unfair competition.
The case lands on a company already fighting on several fronts. States including New York, Nevada and Wisconsin have brought gambling claims against Kalshi.
Related Listen: DEX in the City: How Kalshi’s Rough Week Became a Federal Fight for Prediction Markets
The post FlightAware Sues Kalshi and Seeks an Injunction to Shut Down Its Flight Cancellation Bets appeared first on Unchained.
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