FlightAware – serving as a flight tracking services platform – has filed a lawsuit against Kalshi following the operator’s decision to allow for contracts tied to flight delays and cancellations at every airport in the US.
In the lawsuit, FlightAware alleges Kalshi named the service as its primary source agency for settling flight cancellation markets, but was not previously granted use of the platform's name, data or trademarks.
The original filing, deemed with the terminology “AirportDelay,” was filed with the Commodity Futures Trading Commission (CFTC) on July 14 and included trades based on the percentage of flight cancellations and delays pitted against the total number of flights scheduled.
As a result of the alleged misuse of its name, data and trademarks, FlightAware is seeking damages which have not yet been announced, as well as a jury trial and court orders forbidding Kalshi from further use.
Kalshi’s introduction of event contracts related to airport activity garnered public and legal criticism due to customers potentially being motivated to cause intentional flight delays or cancellations.
Due to FlightAware’s name and trademarks being used as part of the contract settlements, customers were led to believe the service was directly tied to Kalshi’s offering, according to the complaint filed in the US District Court for the Southern District of New York.
Currently, traders on Kalshi can swap event contracts related to the number of delays and cancellations reported at specific US airports, such as John F. Kennedy International in New York and Chicago O’Hare International.
In fellow legal news regarding Kalshi, a federal court in Connecticut chose to deny the operator’s preliminary injunction motion against the state’s Department of Consumer Protection on August 10, ruling sports-event contracts cannot be defined as “swaps” under the Commodity Exchange Act.
Kalshi originally filed a lawsuit against the Connecticut Department of Consumer Protection in December 2025 after receiving a cease-and-desist order from the regulator.
Kalshi suffered a significant legal setback in Utah after a federal judge ruled that the state has the authority to enforce its gambling laws against prediction market operators on August 6
