Prediction market platform Kalshi has ended its advisory contract with Donald Trump Jr., a move it attributes to his venture capital firm, 1789 Capital, holding a stake in rival platform Polymarket. According to a Kalshi spokesperson, conversations about Trump Jr.'s exit began in August, after 1789 Capital announced a major stake in Polymarket. The spokesperson said the separation was mutual, with both Kalshi and Trump Jr. agreeing it was a conflict of interest to keep the president's son as an advisor while he served as a top investor for Polymarket.

Trump Jr. first became a strategic advisor to Kalshi in January 2025. Although he has left Kalshi, he still serves as an advisor to Polymarket, a connection that could make prediction markets an easy target for lawmakers, according to Joseph Konizeski, a former trial attorney at the CFTC. The timing also comes after Democrats secured a majority across the House and the Senate, with the party expected to crack down on the prediction market industry.S1

In early October, Kalshi CEO Tarek Mansour said on MS NOW that Trump Jr.'s connection to the company created an "optics issue," but added that Kalshi had never relied on that relationship to gain favor with the government.S1