Donald Trump Jr. is no longer a paid adviser for Kalshi, the prediction market company, after his venture capital firm expanded its financial stake in rival platform Polymarket.
The departure concludes an advisory relationship that began in January 2025. Donald Trump Jr. joined the company as a paid strategic adviser then and received an equity stake valued at $300,000 by the Financial Times.
Kalshi officials said the decision to part ways was mutual. It stemmed from 1789 Capital leading a major funding round for Polymarket over the summer.
Polymarket Investment Ended the Advisory Role
Discussions to unwind the advisory contract started in August. News broke then that 1789 Capital had added roughly $300 million to its earlier investments in Polymarket.
That financing brought total backing of the competitor to earlier contributions of about $200 million. The financing round valued Polymarket at $21 billion.
Kalshi reached out to Trump Jr. during the fall to address the conflict of interest. Company representatives said that advising two direct competitors presented clear complications.
Washington Scrutiny Met the Personnel Change
The personnel change coincides with political shifts in Washington. Congressional Democrats announced plans to investigate the Trump family’s business relationships and ties to prediction markets following a Democratic sweep of both the House and Senate in the midterm elections.
Kalshi’s spokesperson maintained that no political considerations factored into the decision. Sources familiar with the matter told Reuters that internal concerns had been raised regarding potential congressional scrutiny.
The prediction market sector faces legal and regulatory pressure nationwide. Louisiana Attorney General Liz Murrill announced a lawsuit in state court against Kalshi, Polymarket, and other operators for illegal online gambling.
For too long, they have violated our laws with impunity. No longer: I am seeking an immediate restraining order and an injunction to restore the rule of law in Louisiana.
Liz Murrill, Louisiana Attorney General
