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Kalshi ends Trump Jr advisory role after Polymarket investment by his firm
Developing story first seen 4 hours ago
Kalshi has ended Donald Trump Jr’s advisory contract after his venture capital firm, 1789 Capital, led a funding round for rival Polymarket. The development sharpens a conflict between the two prediction market companies as the sector faces growing political scrutiny in the United States.
Kalshi said the decision was mutual and discussions began in August, when 1789 Capital’s investment became public; it said politics played no part. Two sources said concerns about possible consequences of Democrats’ midterm sweep had also been raised internally. Trump Jr joined Kalshi as a strategic adviser in January 2025 and received a stake reportedly worth US$300,000 at the time; Kalshi is valued at US$40 billion. US lawmakers are considering tighter rules, including limits on bets involving military operations and investigations into insider trading concerns.
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In short
- Kalshi ended Trump Jr’s advisory contract after his firm backed Polymarket.
- The company says the decision was mutual and not politically motivated.
- US lawmakers are weighing greater oversight of prediction markets.
How this story developed
- 19 minutes ago The latest account links the split to 1789 Capital’s summer funding round for Polymarket and adds that Senator Elizabeth Warren has pledged to crack down on insider trading in prediction markets.
- 29 minutes ago Kalshi ended Donald Trump Jr’s advisory contract amid a growing rivalry with Polymarket and scrutiny of prediction markets in the United States.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Ending the contract can be seen as a sensible way to manage a genuine conflict of interest: Trump Jr’s firm backed a direct competitor, and clear separation may help protect confidence in Kalshi’s advice and decision-making. With prediction markets facing scrutiny over insider trading, avoiding even the appearance that an adviser could serve competing interests may also support public trust.
The case against
The split may be viewed as an unnecessary response to an investment made by Trump Jr’s separate venture capital firm, particularly since Kalshi says both sides agreed to it and discussions began before the latest funding round. Keeping him as an adviser could have preserved his experience and connections while allowing the firms to manage any conflicts through disclosure or limits on his role.
Explained simply
Prediction markets let people trade on the likelihood of future events, such as elections or economic outcomes. Kalshi and Polymarket are two major platforms in a fast-growing sector, where users buy and sell contracts whose value depends on whether an event happens.
Donald Trump Jr, the son of the US president, joined Kalshi as a strategic adviser in January 2025. He is also connected to 1789 Capital, a venture capital firm that invested in Polymarket, a competing platform. Elizabeth Warren is a US senator who has called for action against insider trading in prediction markets.
The overlap matters because advisers may have access to information about a company while also having ties to its rivals. As these markets grow, questions about conflicts of interest and rules against trading on confidential information have drawn more attention in the United States.
Coverage · 2 sources
Read the full article at the source →
Originally published by CNA as “Exclusive-Kalshi ends Donald Trump Jr’s advisory contract due to Polymarket conflict”.