FlightAware, a company that specializes in flight data, has withdrawn its lawsuit against Kalshi, the prediction market platform, just one day after filing the case. In the now-dropped suit, FlightAware had accused Kalshi of using its flight data and trademarks without authorization to support betting markets tied to flight cancellations. The withdrawal does not prevent FlightAware from refiling the case in the future. The case unfolded while Kalshi's aviation-related contracts were drawing criticism on social media, with some users raising concerns that the markets could create incentives for malicious interference with flights. At the same time, retail participation in those contracts has been relatively low. Neither company has offered a public comment about the lawsuit. The case had raised a broader question about whether prediction markets can use third-party data and trademarks without a commercial agreement. In addition, Kalshi is facing other regulatory and legal challenges in several states. CoinDesk reported the case.

FlightAware, a flight tracking company, has initiated legal action against Kalshi, a prediction market platform, in a New York federal court. The lawsuit claims that Kalshi, without authorization, used FlightAware's flight data and trademark to build and operate a market for betting on airline flight cancellations. According to the complaint, Kalshi breached the terms of its license from FlightAware. It allegedly continued to use the data to settle contracts even after it received a cease-and-desist notice. Although Kalshi added a disclaimer stating that its market is not endorsed by FlightAware, the platform kept citing FlightAware's data. Separately, Kalshi is also facing other lawsuits brought by the states of New York, Wisconsin and Nevada, which accuse it of running gambling operations without a license. CoinDesk reported the lawsuit.

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