FlightAware, the real-time flight tracking platform, has voluntarily dismissed its lawsuit against prediction markets operator Kalshi just one day after initiating legal proceedings over the alleged unauthorized use of its name and data.

In a filing submitted Tuesday to the US District Court for the Southern District of New York, attorneys for FlightAware notified the court of the voluntary dismissal. The suit had been filed the previous day, with FlightAware alleging that Kalshi used its "data and name to run gambling markets on flight cancellations."

The rapid reversal may point to a private settlement, though neither FlightAware nor Kalshi had issued public statements on the matter as of Wednesday. Cointelegraph reached out to both companies for comment but did not receive an immediate response.

Also on Tuesday, a judge ordered Kalshi to show cause why the court should not grant a temporary restraining order protecting FlightAware's trademark and data.

At least one Kalshi event contract reflected a language change following the dispute. The contract replaced the term "FlightAware" with "Primary Source Agency" as the entity responsible for verifying flight cancellation outcomes, noting that the trade did not "indicate an endorsement of this product or any affiliation" between FlightAware and Kalshi. The "Primary Source Agency" designation linked to FlightAware's website.

FlightAware's complaint had alleged trademark infringement, breach of contract, injury to reputation, and unfair competition — the latest in a series of legal challenges confronting prediction market operators. Kalshi, along with Polymarket and similar platforms, faces actions from multiple US state gaming authorities and regulators over allegations of offering unlicensed sports betting to residents.

Prediction markets, which allow participants to trade contracts tied to the outcome of real-world events, have expanded aggressively beyond their origins in election forecasting and crypto into domains like sports, weather, and now airline operations — a push that has put them in direct conflict with data providers and state gambling regulators alike.

CFTC remains at odds with state authorities over prediction market oversight

On Tuesday, the US Commodity Futures Trading Commission (CFTC) announced it had invoked "emergency authority" to block New York state officials from obtaining a temporary restraining order that would have prohibited Kalshi from offering event contracts nationwide. CFTC Chair Michael Selig has repeatedly asserted that the agency holds "exclusive jurisdiction" over prediction markets.

The CFTC's intervention followed a July lawsuit by New York authorities alleging that Kalshi was operating an unlicensed gambling platform through its sports and event contracts.

The federal regulator's move mirrored its actions in a parallel Michigan case. In June, a Michigan judge ordered Kalshi to cease offering sports betting contracts to state residents pending resolution of the civil case. However, the CFTC under Selig directed Kalshi not to comply with the state-level order — a situation that the company's head of enforcement and legal counsel described as placing Kalshi in an "impossible position" between conflicting US state and federal directives.