Kalshi Ends Donald Trump Jr. Advisory Contract Over Polymarket Stake
Kalshi has ended its advisory contract with Donald Trump Jr. after his venture firm 1789 Capital increased its stake in rival Polymarket. The company says the split was mutual, as senators and state attorneys general step up scrutiny of prediction markets.
Kalshi has ended its advisory contract with Donald Trump Jr. after his venture firm 1789 Capital increased its stake in rival Polymarket, a Kalshi spokesperson told Reuters on Nov. 12.
The spokesperson said the two sides mutually agreed to end the role.
"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,"
Kalshi spokesperson
Conversations about the split began in August, after 1789 led Polymarket's latest funding round. A 1789 spokesperson put that round at $1 billion at a $21 billion valuation. Neither Polymarket nor Trump Jr. immediately responded to Reuters.
Timeline of the roles
Kalshi named Trump Jr. a strategic advisor in January 2025 and gave him a stake that the Financial Times later reported was worth $300,000. He joined Polymarket's advisory board in August 2025, when 1789 first invested in that company.
Political scrutiny
Sens. Elizabeth Warren and Jeff Merkley have flagged Trump Jr.'s advisory roles and financial interests in prediction-market platforms in a letter posted on Warren's Senate site. They asked the White House for answers by Nov. 23. Warren is set to chair the Senate Banking Committee.
State actions continue
The split comes as both platforms face pressure from state authorities. Louisiana Attorney General Liz Murrill announced a suit in state court against Kalshi, Polymarket and other platforms, seeking a restraining order and injunction. By one count, Louisiana is the 13th state to bring an enforcement action.
"For too long, they have violated our laws with impunity. No longer: I am seeking an immediate restraining order and an injunction to restore the rule of law in Louisiana."
Liz Murrill, Louisiana Attorney General
Utah also recently sued Kalshi and some market makers and filed criminal charges.
Context
Kalshi's regulatory exposure has grown in recent days. On Nov. 11 we reported that the CFTC privately warned Kalshi of possible charges over how it notified the agency about new contracts. Kalshi describes that matter as procedural, involving a handful of contracts, many never live. Earlier, Arkansas sued Kalshi over alleged illegal gambling.
Kalshi and Polymarket have reported valuations of $40 billion and $21 billion, respectively. Polymarket faces a broad CFTC investigation.
