FlightAware, the aviation tracking company, has filed a lawsuit against Kalshi, a CFTC-regulated prediction market exchange, in the U.S. District Court for the Southern District of New York. The complaint, filed on Monday, alleges that Kalshi used FlightAware's registered trademark and flight data without authorization to support contracts tied to commercial flight delays and cancellations.

According to the filing, FlightAware sent repeated demands for Kalshi to cease using its mark and flight information, but Kalshi continued offering the contracts. The products in question appeared after Kalshi entered the commercial flight trading market in July, an expansion beyond its core offerings in political and economic event contracts.

Jeff Roberts commented on the case via X:

FlightAware is suing Kalshi for using its data to settle airport bets This is public info and Kalshi doesn't claim FA endorses the bets. So case feels shaky unless Kalshi reneged on a contract. Details via @DustinGouker pic.twitter.com/iea1jJJbO5 — Jeff Roberts (@jeffjohnroberts) August 11, 2026

Allegations and Safety Concerns

The complaint lists trademark infringement, breach of contract, unfair competition, and reputational harm among its claims. FlightAware asserts that Kalshi's listings created a misleading impression that FlightAware endorses or is affiliated with the markets. The company denies any such affiliation and contends that the perceived connection could damage its relationships with airlines, travelers, and other clients.

Airlines reportedly condemned the products. According to FlightAware, clients immediately began associating the company with the management and verification of the prediction markets.

Safety concerns form a central part of the complaint. FlightAware argues that cancellation-based contracts could incentivize bad actors to profit from disrupting air traffic, potentially causing flight delays and endangering passengers. The complaint also raises concerns about contracts favoring on-time arrivals, warning that such markets could pressure airline, airport, or aviation workers to compromise safety standards. FlightAware has asked the court to prohibit these activities before any public safety harm occurs.

Broader Prediction Market Landscape

The lawsuit comes amid a wave of legal challenges against prediction market operators in the United States. State gaming agencies have sought court orders to prevent event contracts from being classified as illegal wagers, with most disputes centered on sports-related prediction markets. These cases have sparked conflicts between the CFTC, which regulates Kalshi as a designated contract market under federal commodity law, and state officials over how event contracts should be classified.

While the FlightAware case primarily concerns trademark and data usage, the complaint also highlights broader concerns about traders exploiting nonpublic information. The filing references cases involving access to information related to presidential speeches and military operations in Venezuela. One case involves a teleprompter operator for then-President Donald Trump who reportedly held $100,000 worth of contracts tied to words used in Trump's speeches. Another involves a U.S. soldier who bet on whether the president of Venezuela would be removed from office after obtaining nonpublic information about a military operation.

A second-quarter report by Predicted identified Kalshi and Polymarket as the dominant providers of prediction market services. Together, the two platforms controlled more than 90% of total prediction market volume, with a combined notional volume exceeding $90 billion during the quarter. The rapid expansion of prediction markets into domains ranging from elections to aviation has increased scrutiny from both regulators and companies whose data and brands become reference points for traded contracts.