A flight tracking service is suing Kalshi for using its data without authorization

FlightAware is seeking a permanent injunction against the prediction market platform.

FlightAware, a flight tracking service and data provider, is suing Kalshi for using its "data and name to run gambling markets," TechCrunch writes . The lawsuit was filed in New York, where Kalshi is currently being sued by New York Attorney General Letitia James for allegedly running an illegal gambling operation.

FlightAware claims that it was "never informed" that Kalshi would be using its data or trademark, and that the company has continued to do so, despite FlightAware sending a cease-and-desist letter. For violating its terms, using its trademark and harming its reputation, FlightAware is seeking damages from Kalshi and a permanent injunction that will prevent Kalshi from using its data.

Engadget has asked Kalshi to comment on FlightAware's lawsuit. We'll update this article if it responds.

Kalshi began offering users the ability to bet on the percentage of flights cancelled at an airport in a given timeframe in July 2026. At the time, the company said it was verifying flight cancellations with data from FlightAware and the US Department of Transportation, according to The Wall Street Journal . In a statement to the publication at the time, FlightAware made it clear that wasn't allowed. "No company is — or will be — authorized to use the data collected through the FlightAware network for this purpose," the company said. "Any customer who uses FlightAware in violation of the terms of use will have their account terminated."

FlightAware only learned Kalshi was using its data when media outlets started reaching out for comment, according to the lawsuit. After discovering the company planned to offer prediction markets that were "verified from FlightAware," it sent its cease-and-desist letter. Besides the ways Kalshi allegedly violated its rules and trademark, the company echoes the concerns of the airline industry that prediction markets for flights incentivize the "mass disruption of air travel" for anyone who wants to make money on the platform.

Kalshi has tried to prevent some of that behavior by enforcing insider trading rules, like verifying a user's employer for some bets, and preventing politicians and athletes from betting on elections and games, respectively . Many states still view Kalshi as gambling and want it to be treated accordingly. The Commodity Futures Trading Commission, Kalshi's assigned regulator, has managed to fight back against some attempts to rein in the platform, but New York's lawsuit will be another test.