Kalshi Cuts Ties With Donald Trump Jr. as Democrats Prepare to Scrutinize Prediction Markets
Prediction market Kalshi has ended Donald Trump Jr.’s paid advisory role, a move that comes as incoming Democratic majorities promise to scrutinize the Trump family’s ties to the betting industry.
Kalshi called it a mutual business decision that followed a move by Trump Jr.’s investment firm, 1789 Capital, to increase its stake in Kalshi’s biggest rival, Polymarket, the Associated Press reported.
“We have mutually agreed to end Don’s advisory role after his firm’s significant investment in a competitor this past summer,” Kalshi spokesperson Dani Lever said in a statement to The Hill. “We are grateful for his contributions in helping us market Kalshi to more customers.”
Talks about his exit began in August, after 1789 Capital announced a major Polymarket stake, and both sides agreed it was a conflict of interest to keep him on, CNBC reported, citing the spokesperson.
The firm led a $1 billion Polymarket funding round this summer, investing $300 million itself, The Hill reported. Trump Jr. remains an adviser to Polymarket.
Democrats Are Watching
Trump Jr. joined Kalshi as a strategic adviser in January 2025 and reportedly received a $300,000 equity stake, Forbes reported. He joined Polymarket’s advisory board that August.
The departure came two days after Sens. Elizabeth Warren (D-Mass.) and Jeff Merkley (D-Ore.) sent a letter raising concerns about the potential conflict, according to Forbes.
His dual roles had created political headaches for Kalshi, Bloomberg Law reported, as Democrats prepare to take control of Congress with promises to look into the Trump family’s business ties to prediction markets and crypto.
Those ties could make the industry an easy target for lawmakers, former Commodity Futures Trading Commission trial attorney Joseph Konizeski told CNBC.
Kalshi CEO Tarek Mansour acknowledged in October that the connection created an “optics issue,” but said the company never relied on it to win favor with the government.
Prediction markets let users bet on the outcome of real-world events, from elections to sports. The industry is also grappling with insider trading concerns and legal disputes with state regulators, The Hill noted.
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