NEW YORK, Nov 12 — Prediction market platform Kalshi has mutually agreed to end Donald Trump Jr.’s advisory role following his venture capital firm’s investment in rival platform Polymarket, the company confirmed on Thursday.
The decision was described as a business resolution to a conflict of interest, with Kalshi’s spokesperson stating that conversations to terminate the advisory contract began in August 2025. Trump Jr.’s firm, 1789 Capital, had increased its stake in Polymarket during that period, prompting Kalshi to reassess the arrangement.
Key Developments
- Kalshi terminated Trump Jr.’s advisory contract after his firm’s investment in Polymarket.
- The decision was mutual, with both parties citing a conflict of interest as the reason.
- 1789 Capital’s investment in Polymarket was publicly disclosed in summer 2025, triggering Kalshi’s review.
Company Statement
A Kalshi spokesperson, Dani Lever, stated: “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.” The spokesperson added that the decision was not politically motivated and emphasized that Kalshi had not relied on Trump Jr.’s advisory role for government favor.
Background and Context
Trump Jr. was named a strategic advisor to Kalshi in January 2025, receiving a reported $300,000 stake in the company at the time. His role included assisting with customer acquisition and marketing efforts. Meanwhile, 1789 Capital became an investor in Polymarket in August 2025, contributing to the latter’s funding round.
The termination of Trump Jr.’s advisory role coincides with heightened scrutiny of prediction markets by US lawmakers. Democrats, who secured control of both chambers of Congress in the November 2026 midterm elections, have indicated plans to investigate potential conflicts of interest within the industry. Senator Elizabeth Warren has previously called for stricter oversight of prediction markets, citing concerns over insider trading and market integrity.
Industry Dynamics
Kalshi and Polymarket are two of the leading platforms in the prediction market sector, which gained prominence in 2024 for accurately forecasting political outcomes, including the 2024 US presidential election. Kalshi has emphasized its market accuracy, while Polymarket has faced regulatory challenges, including a 2022 enforcement deal with the Commodity Futures Trading Commission (CFTC) over its offshore operations.
Polymarket has recently undergone organizational changes, including job cuts and contractor terminations, as part of a restructuring effort to compete with Kalshi. The company confirmed that over 50% of the affected roles were contractor positions, with leadership citing the need to align resources for future growth.
Reactions and Unanswered Questions
Neither Polymarket nor Donald Trump Jr. responded to requests for comment. Representatives for 1789 Capital could not be reached for clarification on the firm’s investment strategy or its relationship with Kalshi.
The termination of Trump Jr.’s advisory role raises questions about the intersection of business interests and political influence in the prediction market industry. While Kalshi has framed the decision as a conflict of interest resolution, the timing of the move—amidst Democratic control of Congress—has fueled speculation about potential regulatory risks for the sector.
What’s Next
Kalshi has not indicated whether it plans to replace Trump Jr. in an advisory capacity. The company continues to expand its market presence, including partnerships such as a lucrative deal for the FIFA World Cup. Meanwhile, Polymarket is navigating regulatory scrutiny and internal restructuring as it competes for market dominance.