Kalshi terminated its advisory relationship with Donald Trump Jr. after his venture firm increased its investment in competing platform Polymarket. The former advisor originally joined Kalshi in January 2025 and received a company stake valued at approximately $300,000. Although Kalshi insists the split was strictly business-related, sources noted internal worries about heightened oversight from a newly empowered Democratic majority in Congress. Meanwhile, lawmakers are aggressively targeting the wider prediction market industry over insider trading and defense-related wagers.
Key points
A competitive conflict of interest prompted the mutual termination of Donald Trump Jr.'s…: A competitive conflict of interest prompted the mutual termination of Donald Trump Jr.'s formal advisory role at Kalshi.
Looming congressional investigations by newly empowered Democrats present substantial reg…: Looming congressional investigations by newly empowered Democrats present substantial regulatory risks for businesses tied to the Trump family.
Federal legislators are intensifying scrutiny across the prediction market sector over al…: Federal legislators are intensifying scrutiny across the prediction market sector over allegations of insider trading and controversial geopolitical bets.
Sources checked by our analysis pipeline: 1
NEW YORK, Nov 12 : Kalshi has ended its advisory contract with Donald Trump Jr, after his venture capital firm 1789 Capital increased its stake in arch-rival Polymarket, according to a spokesperson for the $40 billion prediction markets startup.
The Democratic sweep of both houses of US Congress in the midterm elections could bring more scrutiny of companies over links to the White House. Democrats have said they plan to use investigative powers on President Donald Trump's family.
Kalshi had named Trump Jr a "strategic advisor" in January 2025. Trump Jr was given a stake in the company that the Financial Times reported at the time was worth $300,000.
"We have mutually agreed to end Don's advisory role after his firm's significant investment in a competitor this past summer. We are grateful for his contributions in helping us market Kalshi to more customers," the spokesperson said, adding that the decision was mutual and the conversations to end the contract started in August since 1789 led Polymarket's most recent funding round.
The Kalshi spokesperson said that there were no political considerations…
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