Prediction market platform Kalshi has ended its advisory contract with Donald Trump Jr. after his venture capital firm increased its investment in rival platform Polymarket, according to a Reuters report.
Trump Jr. Ends Advisory Role After Funding Competitor Polymarket
Kalshi originally named Trump Jr. as a strategic advisor in January 2025. At the time, the company provided him with a stake in the startup that the Financial Times reported was valued at $300,000, according to coverage from CNBC. The advisory arrangement concluded following moves by 1789 Capital, the venture capital firm where Trump Jr. is a partner, to lead a major funding round for competitor Polymarket.
During the summer, 1789 Capital spearheaded a $1 billion funding round that valued Polymarket at roughly $21 billion, contributing approximately $300 million of that total investment. Kalshi was valued at under $2 billion when Donald Trump Jr. initially joined the company, but its valuation has since reached $40 billion according to a spokesperson.
When Trump Jr. joined Kalshi as a paid strategic advisor, CEO Tarek Mansour described a role involving market strategy, growth, partnerships, and reaching new audiences, while the company noted his work helped market the platform to more customers.
In August 2025, Trump Jr. also joined Polymarket’s advisory board, and he remains an advisor to that platform. Kalshi reached out to Trump Jr. during the fall to discuss the conflict of interest after news of 1789 Capital’s investment became public in August.
In early October, Kalshi CEO Tarek Mansour acknowledged on MS NOW that Trump Jr.’s connection to the company creates an “optics issue,” while maintaining that Kalshi has never relied on that relationship to gain favor with the government.
“We have mutually agreed to end Don’s advisory role after his firm’s significant investment in a competitor this past summer. We are grateful for his contributions in helping us market Kalshi to more customers,” said a Kalshi spokesperson, noting that discussions to unwind the contract began in August after 1789 Capital led Polymarket’s funding round.
While Trump Jr. has exited his advisory position at Kalshi, he remains an advisor to Polymarket. Representatives for 1789 Capital declined to comment, and Polymarket and Donald Trump Jr. did not immediately respond to a request for comment.
Political Scrutiny on Capitol Hill
The departure coincides with a shift in the political landscape following the Democratic sweep of both houses of Congress in the midterm elections, which sources indicate has heightened awareness of corporate ties to the White House according to Reuters reporting.
Although Kalshi’s spokesperson maintained that political considerations did not factor into the decision to end the contract, two sources familiar with the matter said that some concerns had been raised within the company regarding potential ramifications from the Democratic sweep, specifically that having the president’s son as an advisor might expose the company to scrutiny by the U.S. Congress.
Democrats have stated plans to use their investigative powers to examine President Donald Trump’s family business ties and dealings with the prediction industry and crypto markets. Joseph Konizeski, a former trial attorney at the CFTC, previously told CNBC that Trump Jr.’s ties to the industry could make prediction markets an easy target for lawmakers to pursue.
“Democrats are ready to take on all of it; to take on the crime family that is sitting in the White House, to take on the large corporations ripping off the American taxpayer,” California Rep. Robert Garcia declared in a video posted on X.
Lawmakers on Capitol Hill have turned their attention toward event contract platforms following a series of well-timed wagers that raised questions regarding insider trading and market ethics. Senator Elizabeth Warren has questioned the legitimacy and regulation of election-related prediction markets and has vowed to crack down on insider trading within these platforms.
“Folks are rightfully concerned about dangerous bets on elections, war, assassinations, terrorism, and government actions that go against the public interest,” Oregon Sen. Jeff Merkley told Politico.
Lawmakers on Capitol Hill have turned their attention toward event contract platforms following a series of well-timed wagers that raised questions regarding insider trading and market ethics. Several other efforts to rein in prediction markets are also moving forward on Capitol Hill. A legislative measure was put forward earlier this year by Democratic lawmakers Senator Chris Murphy and Representative Greg Casar seeking to prohibit prediction market wagering concerning military missions and other delicate governmental activities.
At the same time, prediction market operators face ongoing legal disputes over state gambling laws and federal oversight, with several states having filed lawsuits against Kalshi and Polymarket arguing that the platforms violate state gambling statutes.
Prediction markets first rose to prominence during the 2024 presidential election by diverging from traditional opinion polls to forecast a Trump victory, leading Kalshi to boast about its forecast accuracy while criticizing pollsters and traditional media.