Donald Trump Jr. Dumped by Kalshi After the Prez's Son's Investment Firm Backs Rival Polymarket in Major Conflict of Interest
Kalshi just ended Donald Trump Jr.’s advisory role
Nov. 13 2026, Published 1:28 p.m. ET
Donald Trump Jr. is no longer a paid adviser to prediction market platform Kalshi after his venture capital firm, 1789 Capital, increased its investment in rival Polymarket.
Kalshi confirmed the decision on November 12, describing the departure as a mutual agreement following the firm's significant financial commitment to its competitor.
The move ends an arrangement in which President Donald Trump's eldest son held advisory positions at both companies while his investment firm backed Polymarket.
The separation also comes as prediction markets face increased scrutiny from lawmakers and Democrats prepare to investigate the Trump family's business interests following their victories in the midterm elections.
Kalshi Ends Trump Jr.'s Advisory Contract After Polymarket Investment
His firm 1789 Capital put a big investment into rival Polymarket
A Kalshi spokesperson confirmed the departure to Reuters, explaining that discussions about ending Trump Jr.'s contract began in August, after 1789 Capital's latest investment in Polymarket became public.
"We have mutually agreed to end Don's advisory role after his firm's significant investment in a competitor this past summer," the spokesperson said. The company also expressed appreciation for his contributions "in helping us market Kalshi to more customers."
According to Reuters, Kalshi contacted Trump Jr. again during the fall as the two sides worked toward ending their arrangement. The spokesperson maintained that political considerations did not influence the decision.
However, two people familiar with the situation told the publication that some Kalshi employees had raised concerns about the potential consequences of retaining the president's son as an adviser, particularly after Democrats secured control of both chambers of Congress.
Trump Jr. joined Kalshi as a strategic adviser in January 2025. His compensation included an equity stake that the Financial Times previously valued at approximately $300,000, according to Reuters.
1789 Capital Increases Its Investment in Rival Polymarket
The company said they mutually agreed it was a conflict of interest
The business arrangement became increasingly complicated as 1789 Capital expanded its financial involvement with Polymarket.
The investment firm had previously put approximately $200 million into the prediction market company. It subsequently committed another $300 million to a $1 billion funding round that valued Polymarket at approximately $21 billion, according to CoinDesk's September 1 report.
The latest commitment made 1789 Capital a significant financial backer of a platform competing directly with Kalshi.
Trump Jr. had also joined Polymarket's advisory board in August 2025, following the announcement of the firm's initial investment.
Consequently, he maintained advisory relationships with both competing businesses while his venture capital firm held a substantial financial interest in one of them.
Trump Jr. Held Paid Role at Kalshi Alongside Polymarket Position
Trump Jr. had been a strategic advisor at Kalshi since January 2025 and got a stake in the company
Kalshi announced Trump Jr.'s appointment as a strategic adviser on January 13, 2025.
At the time, the president's son discussed his interest in prediction markets and credited Kalshi with providing an early indication of Donald Trump's victory in the 2024 presidential election.
"On Election night at Mar-a-Lago, while biased outlets called the race a coin toss, my family and close friends used the prediction market Kalshi to know we won hours ahead of the fake news media," he said in the company's announcement.
His departure ends his advisory relationship with Kalshi, but does not change his previously established connection to Polymarket through its advisory board or 1789 Capital's investment.
Prediction Markets Face Growing Political and Regulatory Scrutiny
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He still advises Polymarket after the split
The separation comes as lawmakers are raising questions about prediction markets, including potential insider trading, market manipulation and the influence of political connections on the industry.
On October 29, Democratic Sen. Elizabeth Warren and Republican Sen. John Curtis requested information from Kalshi and Polymarket about their efforts to prevent insider trading and manipulation in election-related markets.
The lawmakers also questioned whether the platforms adequately protect the integrity of election-related information.
The political pressure extends beyond the two companies. Following Democrats' victories in both chambers of Congress, party members have indicated that they intend to use their investigative powers to examine the Trump family's business interests.
Reuters reported that some Kalshi employees were concerned Trump Jr.'s continued advisory position could expose the company to additional congressional scrutiny. The spokesperson, however, denied that political considerations played a role in the separation.
