Business · 12 August, 2026 · 2 min read
FlightAware Withdraws Lawsuit Against Kalshi Over Flight Cancellation Prediction Markets Data Use
FlightAware voluntarily dismissed its federal lawsuit against Kalshi without prejudice. Kalshi allegedly used FlightAware's data and trademark to host flight-cancellation bets.
FlightAware lawsuit withdrawn one day after filing.
6 of 8 outlets skipped it: kalshi outcome text changed from “from FlightAware” to “Primary Source Agency”.
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Reuters
“Flight-tracking company FlightAware withdrew its lawsuit against Kalshi on Tuesday”Read the original ↗
@coindesk
“FlightAware abruptly withdrew, without prejudice and without sharing a motive”Read the original ↗
Reuters is purely factual; CoinDesk suggests motive while noting lack of motive.
FlightAware withdraws suit
FlightAware withdrew its lawsuit against Kalshi on Tuesday, a day after filing the case accusing the prediction markets company of using its data and name to host gambling markets on flight cancellations.
“Flight-tracking company FlightAware withdrew its lawsuit against Kalshi on Tuesday”
Reuters said the case was "voluntarily dismissed, without prejudice, against all defendants," and noted that neither company immediately responded to Reuters' requests for further comment.R
The Reuters report added that the U.S. flight cancellation contract for the week ending August 14 remained available on Kalshi's website, although it no longer named FlightAware as the source.R
Reuters also reported that Kalshi changed its disclaimer to say the market outcome was "verified from Primary Source Agency," linking to FlightAware's website rather than naming it directly.R
Dispute over verification
The dispute centered on how Kalshi described the source used to settle its flight-cancellation contracts, with Reuters reporting that the disclaimer on Kalshi's flight cancellation contract page reads "outcome verified from Primary Source Agency" and links to FlightAware's website.R
In the earlier framing, Reuters said the disclaimer had previously verified outcomes "from Flight Aware," while Kalshi's updated disclaimer says the market and products "have not been endorsed by the Primary Source Agency or its affiliates."R
The Technology Org report said FlightAware filed in federal court in the Southern District of New York, naming Kalshi Inc. and three affiliated entities, and sought damages, an accounting of profits, and court orders barring Kalshi from using its data or name.
Technology Org also quoted FlightAware's complaint that "Kalshi never informed FlightAware that it would rely on FlightAware’s data to determine the outcome of these betting markets," tying the verification dispute to FlightAware's allegation of unauthorized reliance.
What remains at stake
Even after FlightAware's withdrawal, the underlying conflict over data usage and brand association remained visible in how Kalshi presented the flight-cancellation market, with Reuters describing that the contract page no longer named FlightAware as the source.
“create “gambling markets on flight cancellations” without authorization”
The San Joaquin Valley Sun reported that FlightAware had filed a lawsuit accusing Kalshi of creating “gambling markets on flight cancellations” without authorization and said FlightAware sought unspecified damages, a court order to stop Kalshi’s use of its data and name, and requested a jury trial.
Technology Org said FlightAware argued that Kalshi's arrangement misled users into believing it was a partner in the scheme, and it also raised the airline-industry objection that paying people when flights get cancelled creates a financial reason to want them cancelled.
In the same Technology Org account, FlightAware's complaint described the company as facing "imminent and irreparable harm" because its data and name were associated with conduct that could compromise flight operations and passenger safety.