FlightAware drops lawsuit against Kalshi one day after filing

FlightAware has dismissed its lawsuit against Kalshi just one day after filing the suit.

The flight-tracking platform said in a Tuesday filing with the U.S. District Court for the Southern District that it had voluntarily dismissed the legal action.

FlightAware sued Kalshi on Monday, alleging that the prediction market platform improperly used its data and trademark to "run gambling markets on flight cancellations." It had also sought a temporary restraining order (TRO) to bar Kalshi from activities involving the platform.

"When a plaintiff drops a case this fast after demanding a TRO, it usually means the parties worked something out privately," corporate lawyer and Givner Law Founder Ariel Givner commented on X.

Kalshi also revised the language on its flight-cancellation markets, which had been at the center of the brief legal dispute. The platform previously said the outcomes of those markets were "verified from FlightAware," but now says they are "verified from Primary Source Agency," with a link to FlightAware's website.

"This market and these products have not been endorsed by the Primary Source Agency or its affiliates," Kalshi wrote on one of its market pages. "Any references to the Primary Source Agency's delay and cancellation page, or any associated marks, are descriptive only and do not indicate an endorsement of this product or any affiliation between the Primary Source Agency or its affiliates and Kalshi."

The Block has reached out to FlightAware and Kalshi for comment.

Ongoing legal issues

Meanwhile, Kalshi continues to face legal battles with state regulators over its sports-event contracts. 

Last month, New York sued Kalshi, alleging it was operating an illegal gambling business, while a Washington court temporarily blocked the platform from offering sports-related event contracts in the state. A Michigan judge also issued a temporary restraining order against Kalshi earlier this year. 

Minnesota has taken a different path. Last month, a federal judge blocked the state from enforcing its new prediction markets ban, allowing Kalshi and Polymarket to continue operating there while litigation proceeds.

Sports betting and gaming lawyer Daniel Wallach wrote on X earlier this month that four U.S. states had geofenced Kalshi, and predicted that the number would grow to around 10 by early 2027.