TLDR
- Kalshi ended Donald Trump Jr.’s advisory contract after his firm backed Polymarket.
- Talks about the split began in August, Kalshi told Reuters.
- 1789 Capital led a $1 billion Polymarket round at a $21 billion valuation.
- Trump Jr. joined Kalshi in January 2025 with a reported $300,000 equity stake.
- Democratic lawmakers have criticized prediction markets since the midterm elections.
Kalshi has ended its advisory contract with Donald Trump Jr. The prediction market company said the move followed a large investment by his venture capital firm in a rival platform. Reuters reported the news on Thursday.
Kalshi has terminated its advisory relationship with Donald Trump Jr., after his firm 1789 Capital led a funding round for rival Polymarket this summer
story by @denitsa_tsekova & @BobbyAllyn 🖥️ pic.twitter.com/94xW5y3Gic
— Emily Nicolle (@emilyjnicolle) November 12, 2026
Trump Jr. joined Kalshi as a strategic adviser in January 2025. His job was to help the company reach more customers and build partnerships. He joined at a time when prediction markets were gaining attention in the United States.
Why the Contract Ended
A Kalshi spokesperson confirmed the end of the deal in a statement. The company said both sides agreed to part ways. It also thanked Trump Jr. for helping market Kalshi to more customers.
The spokesperson said talks began in August. That was after his firm, 1789 Capital, led the latest funding round for Polymarket. Kalshi called the firm’s investment a major one in a competitor.
Kalshi said politics played no part in the decision. Two people familiar with the matter told Reuters a different story. They said some people inside Kalshi had raised concerns about what the midterm results could mean for the company.
The Polymarket Investment
Polymarket is raising $1 billion in its current round. The deal would value the company at $21 billion. 1789 Capital is set to contribute about $300 million.
Kalshi and Polymarket are two of the largest names in the prediction market industry. Both let users trade contracts tied to real-world events. Those events include elections, economic data, sports and political decisions.
The two firms compete for users, trading volume and liquidity. Their products are very similar. Customers buy and sell positions based on how likely they think an event is to happen.
Because of this overlap, a stake in one platform by someone tied to the other can raise questions. Those questions often center on conflicting business interests. Kalshi pointed to that conflict in explaining the split.
Equity Stake and Political Reaction
Trump Jr. received an equity stake in Kalshi when he joined. The Financial Times reported it was worth about $300,000 at the time. It came on top of his advisory position.
Democrats won both chambers of Congress in the midterm elections earlier this month. Some of those lawmakers have since turned their focus to prediction markets. They have also criticized the Commodity Futures Trading Commission for defending sports-related products on these platforms.
Senator Catherine Cortez Masto of Nevada posted on X about the issue. She wrote that the Trump family is heavily invested in prediction market platforms. Her post was a reply to CFTC Chair Mike Selig.
Representative Ro Khanna of California has gone further. He called for a ban on these products. His comments came in the same week as the Kalshi announcement.
Kalshi has not said whether Trump Jr. will keep his equity stake. Reuters published the company’s statement on Thursday, November 12.
