Flight Aware is suing Kalshi for using its flight tracking data and trademark without authorization, seeking damages and a permanent injunction. The lawsuit, filed in New York, comes as the state’s Attorney General Letitia James also sues Kalshi for allegedly running illegal gambling operations. Flight Aware says it was never informed Kalshi would use its data and sent a cease-and-desist letter that Kalshi ignored.

Kalshi began allowing bets on flight cancellation percentages in July 2026, claiming to verify data with Flight Aware and the US Department of Transportation. Flight Aware immediately stated no company is authorized to use its data for such purposes and would terminate accounts in violation. Flight Aware only learned of the usage when media inquired, according to the lawsuit.

The company echoes airline industry concerns that prediction markets incentivize mass disruption of air travel for profit. Kalshi has tried to prevent abuse with insider trading rules, but many states still view it as gambling. The Commodity Futures Trading Commission has defended Kalshi, but New York’s lawsuit tests its standing.