FlightAware withdraws lawsuit against prediction market Kalshi just one day after filing

Flight-tracking company FlightAware has abruptly withdrawn a lawsuit it filed against prediction market platform Kalshi, dismissing the case just one day after it was brought, according to Reuters. The dismissal was voluntary and made "without prejudice against all defendants," meaning FlightAware could technically refile the claim later.

In its original suit, FlightAware alleged that Kalshi was using its flight data to operate a gambling-style market centered on flight cancellations. The company also argued that its association with Kalshi was harming its reputation and that Kalshi had breached FlightAware's terms of use by applying its data to gambling purposes.

What changed

Neither company has publicly stated why the lawsuit was dropped. However, Reuters pointed to some recent changes in how Kalshi describes its flight-cancellation data on its platform. Previously, Kalshi said outcomes were "verified from FlightAware" — the exact phrasing FlightAware objected to in its complaint. The platform now instead says results are "verified from Primary Source Agency," while still linking out to FlightAware's website. Kalshi has also added a disclaimer stating that its markets and products have not been endorsed by the Primary Source Agency or its affiliates, and that any reference to that agency's cancellation page does not imply an affiliation with Kalshi.

It remains unclear whether those changes alone addressed FlightAware's full set of grievances. Kalshi has not been formally classified as a gambling platform under the law, though several U.S. states view it that way. In July 2026, New York sued Kalshi, alleging it was running an illegal gambling operation. Should that case proceed, it could help reshape how Kalshi is legally classified going forward.