FlightAware drops Kalshi lawsuit one day after filing in the US District Court for the Southern District of New York

FlightAware filed a trademark and data lawsuit against Kalshi, then gave notice of voluntary dismissal the next day. For high-risk PSPs, the useful detail is not the speedrun litigation theater itself, but the fact pattern: prediction markets, event contracts, and state regulators are still colliding over who gets to offer what, where, and under which legal theory.

1. On Tuesday, attorneys for FlightAware told the US District Court for the Southern District of New York that the company had voluntarily dismissed its case against Kalshi, just one day after filing it.
2. The original complaint said Kalshi had used FlightAware’s “data and name to run gambling markets on flight cancellations.” It alleged trademark infringement, breach of contract, injury to reputation, and unfair competition.
3. At least one event contract had already been updated: where it had previously referenced “FlightAware,” it now referred to “Primary Source Agency” as the entity verifying data tied to flight-cancellation outcomes. The updated language also said the trade did not “indicate an endorsement of this product or any affiliation” between FlightAware and Kalshi. “Primary Source Agency” linked to FlightAware’s website.
4. The quick withdrawal could point to a private settlement, but neither company had publicly commented as of Wednesday. Cointelegraph said it contacted the companies for comment and did not receive an immediate response.
5. The case sits inside a broader fight around prediction markets. Kalshi, Polymarket and other prediction market companies are facing legal action from multiple US state gaming authorities and regulators over alleged illicit sports betting offered to residents. On Tuesday, the CFTC said it had invoked “emergency authority” to block New York state officials’ attempt to seek a temporary restraining order against Kalshi over event contracts offered nationwide.

The regulatory backdrop matters because the dispute is not just about one venue or one contract. New York authorities sued Kalshi in July, alleging it was operating an unlicensed gambling platform through contracts on sports and other events. In Michigan, a judge ordered Kalshi in June to stop offering sports betting contracts to residents until the civil case concluded, while the CFTC under Michael Selig ordered Kalshi not to comply with the state order.