FlightAware withdraws lawsuit against prediction market Kalshi one day after filing
The legal action was dismissed without prejudice, leaving the door open for future claims, as Kalshi continues to face separate regulatory scrutiny from New York authorities.
FlightAware has voluntarily dismissed its lawsuit against prediction market platform Kalshi, just one day after initiating the legal proceedings. The case was dismissed without prejudice against all defendants, a procedural move that allows the flight tracking company to potentially refile the suit in the future.
The withdrawal follows modifications to how Kalshi presents flight data on its platform. Previously, the company stated that flight cancellations were "verified from FlightAware," a claim that formed part of FlightAware’s original complaint. Kalshi has since altered this language to cite a "Primary Source Agency" and added disclaimers stating that the market and its products have not been endorsed by that agency or its affiliates.
Despite these changes to the verification claims, Kalshi continues to link to FlightAware’s website. It remains unclear whether these adjustments were sufficient to resolve FlightAware’s concerns, as neither company has publicly confirmed the specific reasons for the abrupt withdrawal of the litigation.
FlightAware’s initial lawsuit alleged that its association with Kalshi was damaging to its reputation and that the platform had violated terms of use by utilising flight data for gambling purposes. While Kalshi has not been legally declared a gambling entity, the nature of prediction markets often attracts regulatory scrutiny.
Kalshi is currently facing a separate legal challenge from the state of New York, which alleges the platform is running an "illegal gambling operation." That lawsuit, filed in July 2026, could significantly impact the legal perception of prediction market platforms if it proceeds. Engadget has contacted both companies for comment but has not yet received a response.
