Kalshi ends Donald Trump Jr.’s advisory contract over 1789 Capital’s Polymarket investment

Kalshi has terminated 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 on Thursday.

Trump Jr. joined the prediction markets platform as a strategic adviser in January 2025 at a time when prediction markets gained prominence in the United States, particularly following the 2024 presidential election when Donald Trump won reelection.

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 spokesperson for Kalshi told Reuters. The decision was mutual and was spurred 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 allow users to trade contracts based on 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 believe a particular event is to occur. As a result, investments in one platform by individuals associated with the other can raise questions about competing business interests.

Trump Jr. had previously received an equity stake in Kalshi reportedly worth approximately $300,000 at the time of his appointment, alongside his strategic advisory position. His role involved helping the company expand its reach, attract customers and build partnerships.

Democratic lawmakers, fresh off a massive midterm election victory earlier this month, have taken aim at prediction markets and the Commodity Futures Trading Commission’s defense of these platforms’ sports-related products.

Senator Catherine Cortez Masto, who represents the state of 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 a response to CFTC Chair Mike Selig. And Rep. Ro Khanna, who represents a California congressional district, called for a ban on those products.