FlightAware Sues Kalshi Over Unauthorized Flight Data Use

FlightAware has sued Kalshi, the U.S. securities exchange that runs regulated prediction markets, in a federal court in New York over the use of its flight‑tracking data to offer bets on flight cancellations. The suit, filed on Tuesday, alleges that Kalshi used FlightAware’s name and proprietary data without permission to promote a market that lets traders bet on whether specific flights will be cancelled.

FlightAware is a global flight‑tracking service that supplies real‑time data to airlines, airports, travel agencies and consumers. Its data is licensed under strict agreements that protect accuracy and commercial value. Kalshi, which launched its platform in 2020 under the Commodity Futures Trading Commission’s oversight, created a market in September 2023 that allowed users to wager on the likelihood of cancellations for major carriers. The lawsuit claims the exchange used FlightAware’s branding and data feeds to set odds and advertise the market, violating the company’s intellectual‑property rights and potentially misleading consumers about the source of the information.

Kalshi has not yet responded publicly to the filing, but the company’s spokesperson in a prior interview said it obtains data from licensed third parties and that it was unaware of any infringement. FlightAware, in its complaint, points out that the exchange’s market relied on real‑time flight status updates that are normally provided only to licensed users. The lawsuit seeks an injunction to stop Kalshi from using the data, as well as monetary damages for lost licensing revenue and reputational harm. The case is expected to test the limits of data use in regulated betting markets and could influence how other exchanges, such as Betfair and DraftKings, source and license real‑time information.

If the court sides with FlightAware, the decision could set a new precedent for protecting proprietary data in the rapidly growing space of prediction markets. It may prompt regulators to tighten rules around data licensing and fair use in financial‑style betting platforms. Kalshi will likely defend its use of data under a fair‑use argument, but the outcome could reshape the industry’s approach to sourcing and monetising flight‑tracking information.