Kalshi Ends Donald Trump Jr. Advisory Contract

Kalshi has ended its advisory contract with Donald Trump Jr., the prediction market company said on Thursday. 

It described the move as a mutual decision that followed his venture capital firm, 1789 Capital, increasing its investment in rival platform Polymarket.

The announcement arrives a week after Democrats took control of both the House and the Senate in the midterm elections, and Democrats have said they plan to investigate the Trump family's investments, including their relationships with both prediction markets, the Associated Press reported.

What Kalshi Said

Kalshi spokesperson Dani Lever said both sides had agreed to end the adviser role after his firm's significant investment in a competitor over the summer, and thanked him for helping market Kalshi to more customers. 

According to CNBC, conversations about his exit began in August, after 1789 Capital announced a major stake in Polymarket. 

The spokesperson told CNBC that both Kalshi and Trump Jr. agreed it was a conflict of interest to keep him as an adviser while he was a top investor in Polymarket.

Trump Jr. still serves as an adviser to Polymarket, CNBC reported. CNBC disclosed that it has a commercial relationship with Kalshi that includes customer acquisition and a minority investment.

A Two-Sided Relationship

Kalshi named the president's eldest son a strategic adviser in January 2025, shortly after President Trump was sworn in for his second term. 

He has been an investor in Polymarket since August 2025, according to the AP. We covered the investment at the time, when Trump Jr.'s firm led a Polymarket funding round.

In early October, Kalshi chief executive Tarek Mansour said on MS NOW that Trump Jr.'s connection to the company created an optics issue, while adding that Kalshi has never relied on the relationship to win favour with the government, CNBC reported.

The Political Backdrop

Both companies have grown quickly over the past two years, and both have received favourable treatment from the White House, the AP noted. The Commodity Futures Trading Commission has backed the industry's efforts to expand products nationwide, including allowing customers to trade sports-related contracts. 

Both companies have firmly denied that their financial relationships with the Trump family played any role in how the industry has been regulated under this administration.

CNBC reported that Democrats are expected to crack down on the prediction market industry now that they hold both chambers. Joseph Konizeski, a former CFTC trial attorney, previously told the network that Trump Jr.'s ties to the industry could make prediction markets an easy target for lawmakers. 

Kalshi's decision removes one visible link between the company and the family, but Polymarket's continuing ties remain.

What To Watch

Investigations by a Democratic-controlled Congress would be one test of the industry's claims about its independence. 

The platforms, which operate differently to sportsbooks, are also fighting a long list of state actions, which is why every political development in Washington is being read alongside the state-level litigation. 

Neither Kalshi nor the sources reviewed said whether Trump Jr. holds any remaining stake or equity in Kalshi, and that detail was not addressed in the coverage.