UPDATE — August 12, 2026: FlightAware voluntarily dismissed this lawsuit
FlightAware LLC filed a voluntary dismissal without prejudice on August 12, 2026 — the same day this page originally published. The dismissal means FlightAware retains the right to refile. Kalshi has since removed FlightAware branding from its flight-cancellation markets. The historical account of what was alleged and why it mattered for the industry remains accurate and is preserved below.
Source: Reuters, CoinDesk, Unchained (Aug. 12, 2026) · Case No. 1:26-cv-06824 (S.D.N.Y.) — confirm current status via CourtListener docket.
August 10, 2026 · Data-rights lawsuit · S.D.N.Y.
FlightAware LLC — the world's largest flight-tracking platform — filed a federal lawsuit against Kalshi on August 10, 2026, alleging that Kalshi used FlightAware's proprietary data and registered trademark without authorization to operate flight-cancellation prediction markets. It's the first data-rights lawsuit in the prediction market industry. FlightAware voluntarily dismissed the case two days later, on August 12, 2026. Here's what happened, what the legal claims meant, and what it means for traders.
New lawsuit type: data-rights, not regulatory
Unlike the state AG and CFTC regulatory battles, this is a private commercial lawsuit over contract breach and trademark infringement. The legal question here is not whether prediction markets are legal — it's whether Kalshi had the right to use FlightAware's data to run them.
Case number
1:26-cv-06824
U.S. District Court, Southern District of New York
Filed
August 10, 2026
One day after news broke of the markets
Relief sought
Injunction + Damages
Jury trial demanded
Markets at issue
Flight-cancellation contracts
Launched by Kalshi on July 14, 2026
FlightAware operates the world's largest flight-tracking platform, serving more than 13 million passengers and 10,000 aircraft operators and service providers. The company maintains over 40,000 ADS-B antennas worldwide to collect real-time aircraft location data.
FlightAware licenses its data under agreements that restrict commercial use, including explicit prohibitions on use in gambling or prediction markets. Kalshi had such an agreement.
The lawsuit names all four Kalshi corporate entities: Kalshi Inc. (parent), KalshiEX LLC (the CFTC-designated contract market / exchange), Kalshi Klear Inc. (clearinghouse holding company), and Kalshi Klear LLC (the in-house clearinghouse).
All four are Delaware-incorporated and headquartered in New York, giving the Southern District of New York jurisdiction.
Prior to July 2026
Data agreement in place
FlightAware and Kalshi had a binding data agreement explicitly prohibiting commercial use of FlightAware's flight-tracking data, including in connection with gambling or prediction markets.
July 14, 2026
Kalshi launches flight-cancellation markets
Kalshi announced markets allowing customers to trade on flight cancellations nationwide and at particular airports. The markets named FlightAware as the "Primary Source Agency," displayed FlightAware's registered trademark, and stated outcomes are "verified from FlightAware."
July 2026
Public backlash; FlightAware sends cease-and-desist
The markets drew immediate criticism from airlines and the public over safety concerns — particularly that financial incentives could encourage tampering with flights. FlightAware learned of the markets from reporters and immediately sent cease-and-desist letters. Kalshi continued offering the markets.
August 10, 2026
Complaint filed; TRO motion submitted
FlightAware filed a 45-page complaint in the Southern District of New York (case 1:26-cv-06824) seeking injunctive relief and damages. A simultaneous motion for a Temporary Restraining Order was filed to halt the markets immediately.
August 12, 2026
FlightAware voluntarily dismisses the lawsuit
FlightAware filed a notice of voluntary dismissal without prejudice, ending the active litigation. The dismissal preserves FlightAware's right to refile. Kalshi subsequently removed FlightAware branding from its flight-cancellation markets. The reasons for the withdrawal were not publicly disclosed.
Breach of contract
FlightAware's data licensing agreement with Kalshi explicitly prohibited commercial use, including use in connection with gambling or prediction markets. Kalshi's flight-cancellation markets relied on FlightAware's data to verify outcomes — in direct violation of that agreement.
Why it matters
Contract claims are typically more straightforward than regulatory disputes. If the agreement's language clearly prohibits this use, FlightAware doesn't need to prove anything about whether prediction markets are legal gambling — just that Kalshi violated the contract.
Trademark infringement
Kalshi displayed FlightAware's registered trademark on the betting pages and in marketing materials without authorization. FlightAware argues this created confusion — customers assumed FlightAware was a partner in or endorser of the flight-cancellation markets.
Why it matters
Trademark infringement is a federal claim under the Lanham Act. FlightAware can seek injunctive relief to stop the use of its name and mark, plus damages and attorneys' fees in cases of willful infringement.
Temporary Restraining Order (TRO) motion
Filed simultaneously with the complaint, the TRO motion asks the court to immediately halt Kalshi's flight-cancellation markets while the case proceeds. Supported by declarations from FlightAware's Ian Galloway and attorney William Maher.
Why it matters
A TRO is an emergency order. If granted, Kalshi would have to suspend the markets within days. Courts consider likelihood of success on the merits and irreparable harm — FlightAware argues both exist here.
Case dismissed — flight markets continue for now
FlightAware voluntarily dismissed the lawsuit on August 12, 2026. Kalshi's flight-cancellation markets remain operational, though Kalshi has removed FlightAware branding. Open positions in flight markets are unaffected by the dismissal.
The dismissal was without prejudice — FlightAware could refile if the underlying data-rights dispute resurfaces.
What 'without prejudice' means for future risk
A dismissal without prejudice does not resolve the underlying data-rights dispute. If Kalshi and FlightAware cannot reach a licensing arrangement, or if Kalshi relaunches FlightAware-branded markets, the litigation risk could return.
Watch for any public statements about a licensing deal or data-source changes.
For your other Kalshi positions
This lawsuit is specifically about flight-cancellation data rights and does not affect Kalshi's other markets (politics, economics, sports, culture). Your non-flight positions are unaffected by this particular case.
Kalshi operates under a CFTC designation and continues normal operations.
The prediction market industry has been fighting regulatory battles on two main fronts: state attorneys general arguing the markets are unlicensed gambling, and the CFTC investigating its own oversight authority. The FlightAware case is neither.
State AG lawsuits
About whether prediction markets are gambling under state law. Federal preemption is the main defense.
CFTC disputes
About what event categories the CFTC permits and whether agency rules override state gambling laws.
FlightAware lawsuit
About whether Kalshi had the contractual and legal right to use a specific company's data and name. Pure commercial law — contract and trademark.
This sets a precedent for data-rights disputes in the prediction market space: data providers may have standing to block platforms from using their feeds to settle markets, regardless of whether the markets themselves are legal.
Primary source
This page draws from the complaint filed in FlightAware LLC v. Kalshi Inc. et al., Case No. 1:26-cv-06824 (S.D.N.Y. Aug. 10, 2026), available via PACER and CourtListener. View docket on CourtListener . Case status and outcomes will be updated as proceedings develop; confirm details at the official docket before making trading decisions.
Why three PM companies are suing New York
The regulatory lawsuit cluster — different legal theory, same platform
Kalshi legal risks: the full picture (2026)
All active litigation, regulatory challenges, and court rulings involving Kalshi
NY AG Kalshi lawsuit: what it means for your account
The state AG regulatory battle — separate from the FlightAware data dispute
How prediction markets settle contracts
The role of data providers in market resolution — and why data rights matter
Kalshi review
Full platform review, fees, state availability, and legal status
