FlightAware has filed a lawsuit against Kalshi, alleging the prediction market platform used its proprietary flight cancellation data without permission to power event-based betting contracts. The complaint, filed in federal court, centers on Kalshi's use of FlightAware's real-time cancellation figures to settle wagers on whether flights would be canceled.
The Core Dispute
FlightAware, a flight tracking service, says Kalshi took its data and built a product around it. The lawsuit claims Kalshi's contracts relied on FlightAware's proprietary information, which is not licensed for commercial betting use. FlightAware argues that Kalshi's actions amount to unauthorized use of its intellectual property, and that the data was used in a way that could mislead bettors about flight statuses.
The specific contracts in question are event-based bets that pay out based on whether a flight is canceled. Kalshi, a regulated exchange for event contracts, has been expanding into travel-related markets. FlightAware's data is widely used by airlines, airports, and travelers, but the company says it never gave Kalshi the green light to use it for gambling.
What FlightAware Wants
The lawsuit seeks an injunction to stop Kalshi from using the data, along with unspecified damages. FlightAware is asking the court to block Kalshi from offering any contracts that depend on its cancellation information. The company also wants Kalshi to hand over any profits made from the disputed contracts.
Legal experts following the case say the outcome could hinge on whether Kalshi's use of the data falls under fair use or whether it violates FlightAware's terms of service. FlightAware's data is typically accessed through APIs that come with strict licensing agreements, and the company argues Kalshi bypassed those terms.
Kalshi's Position
Kalshi has not yet filed a formal response in court. The company has previously said it operates within regulatory boundaries and that its contracts are based on publicly available information. But FlightAware's data is not entirely public; it's a proprietary feed that requires a subscription or partnership.
The case is one of the first to test how intellectual property rules apply to prediction markets, which have grown in popularity as a way to bet on everything from election outcomes to weather events. Kalshi is regulated by the Commodity Futures Trading Commission, and its contracts are legal in the U.S. But that doesn't automatically give it the right to use someone else's data.
What Happens Next
The court will need to decide whether to issue a preliminary injunction while the case proceeds. A hearing on that request could come within weeks. If the injunction is granted, Kalshi would have to stop offering the affected contracts immediately, which could disrupt its travel betting business.
FlightAware is also seeking a jury trial. The case is assigned to a federal district court, though the specific judge has not yet been named. Both companies are expected to file additional motions in the coming months, and a trial date, if the case gets that far, is likely more than a year away.
