Prediction market operator Kalshi has terminated its advisory relationship with Donald Trump Jr., the son of President Donald Trump. The decision followed a major investment by Trump Jr.’s venture firm, 1789 Capital, in rival platform Polymarket.

A Kalshi spokesperson confirmed the parties mutually agreed to end the arrangement. Discussions started in August after 1789 Capital led Polymarket’s latest funding round. Trump Jr. joined Kalshi as a strategic adviser in January 2025, shortly before his father’s second inauguration, and received an equity stake reported at approximately $300,000 when the company was valued under $2 billion.

Kalshi stated that political considerations played no part in the decision. Some individuals familiar with internal discussions, however, noted concerns within the company about the implications of Democrats gaining control of both chambers of Congress in the November 3 midterm elections.

Background on the Advisory Role and Competing Investments

Trump Jr. initially took the Kalshi position to support marketing and customer expansion efforts. Kalshi CEO Tarek Mansour had described the role as focused on growth and reaching new audiences. Trump Jr. publicly praised the platform for providing early signals of the 2024 election outcome.

In August 2025, 1789 Capital made an initial investment in Polymarket, and Trump Jr. joined that platform’s advisory board at the same time. The firm later committed roughly an additional $300 million as part of a $1 billion funding round that valued Polymarket at $21 billion. Combined commitments from 1789 Capital approached $500 million. Kalshi itself later raised capital at valuations reported as high as $40 billion.

Trump Jr. continues to hold an advisory position with Polymarket and maintains financial ties through his firm’s stake. The dual connections had drawn attention because the two platforms compete directly for users, liquidity, and market share in contracts tied to political, economic, sports, and other real-world events.

Congressional Scrutiny and Regulatory Pressures

The timing coincides with heightened political attention. Democrats’ midterm victories position them to investigate Trump family business interests in cryptocurrency and prediction markets once they assume control of Congress in January. Sens. Elizabeth Warren and Jeff Merkley have sought White House responses by November 23 regarding Trump Jr.’s advisory and financial links to the platforms.

Their inquiry follows a Commodity Futures Trading Commission settlement with a former White House teleprompter operator. The individual was ordered to pay penalties totaling more than $170,000 and received a three-year trading ban after using advance knowledge of presidential speech content to place bets on Kalshi contracts. Kalshi assisted the investigation.

State authorities have also intensified challenges. Utah filed civil and criminal actions against Kalshi and certain market makers, alleging illegal gambling. Louisiana’s attorney general filed a lawsuit naming Kalshi, Polymarket, and other operators, seeking restraining orders and injunctions. Louisiana became the 13th state to take enforcement steps, and the first to name nearly every major platform as a defendant.

Federal regulators have generally asserted oversight of event contracts on registered exchanges, while states argue that sports-related and similar products fall under gambling laws. The CFTC has issued guidance directing platforms to remove certain state restrictions and has pursued actions supporting federal jurisdiction. Related disputes involving other parties have reached the U.S. Supreme Court.

Kalshi’s decision removes one high-profile connection to the Trump family while Trump Jr.’s ongoing role at Polymarket keeps related financial ties in view as congressional oversight intensifies.