FlightAware withdraws its lawsuit against Kalshi, a day after it alleged Kalshi is using its data without permission to let users bet on flight cancellations (Sumedha Mukherjee/Reuters)

FlightAware, the real-time flight tracking website, filed a lawsuit against prediction markets platform Kalshi for allegedly using its name and data to run gambling markets on flight cancellations. However, just a day after filing the lawsuit, FlightAware voluntarily dismissed the case against Kalshi. The flight data company had stated that Kalshi had changed one of its event contracts to list "Primary Source Agency" as the entity responsible for verifying flight cancellation data, without indicating any endorsement or affiliation between the two entities.

The lawsuit involved allegations of trademark infringement, breach of contract, injury to reputations, and unfair competition. The case was one of many legal actions involving prediction market companies, with Kalshi, Polymarket, and other companies facing scrutiny from US state gaming authorities and regulators. The US Commodity Futures Trading Commission (CFTC) also intervened, invoking emergency authority to block New York state officials' attempts to seek a restraining order against Kalshi's nationwide operations.