Kalshi has ended its advisory contract with Donald Trump Jr. after learning that his venture capital firm, 1789 Capital, had made a significant investment in rival prediction market Polymarket, Reuters reported Thursday.
Trump Jr. joined the prediction markets platform as a strategic adviser in January 2025, as prediction markets gained prominence in the United States, particularly after the 2024 presidential election, which Donald Trump won.
A Kalshi spokesperson confirmed the termination in a statement to Reuters.
"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," a Kalshi spokesperson told Reuters. The decision was mutual and was prompted in August after 1789 led Polymarket’s most recent funding round, the spokesperson said.
Polymarket and Kalshi are two of the largest players in the rapidly expanding prediction market industry. Both platforms let users trade contracts tied to the outcomes of real-world events, including elections, economic developments, sports and political decisions.
The companies compete directly for users, trading volume, liquidity and market share. Their platforms offer similar products, allowing customers to buy and sell positions based on how likely they think an event is to occur. As a result, investments in one platform by people associated with the other can raise questions about competing business interests.
Trump Jr. had reportedly received an equity stake in Kalshi worth approximately $300,000 at the time of his appointment, alongside his strategic advisory role. He was tasked with helping the company expand its reach, attract customers and build partnerships.
Democratic lawmakers, following a massive midterm election victory earlier this month, have criticized prediction markets and the Commodity Futures Trading Commission’s defense of the platforms’ sports-related products.
Senator Catherine Cortez Masto, who represents Nevada, said in a post on X (formerly Twitter) that “Let’s be clear about what’s happening: the Trump family is heavily invested in prediction market platforms” in response to CFTC Chair Mike Selig. Representative Ro Khanna, who represents a California congressional district, called for a ban on those products.
