Donald Trump Jr. exits advisory role at prediction market Kalshi

Kalshi described the departure as a mutual business decision that came after Trump Jr.'s investment firm, 1789 Capital, increased its investment in Kalshi's biggest competitor, Polymarket. The announcement comes a week after Democrats gained control of both the House and Senate in the midterm elections, with party members having indicated plans to investigate the Trump family's investments and business relationships.

Investment Conflict

Trump Jr. became a paid "strategic adviser" for Kalshi shortly after his father was inaugurated for his second term in January 2025. However, his firm has been an investor in Polymarket since August 2025. 1789 Capital increased its investment in Polymarket this past August as part of the company's latest fundraising round, which triggered discussions about ending Trump Jr.'s advisory role with Kalshi.

Regulatory Environment

Both Kalshi and Polymarket have seen their popularity surge in the past two years and have received favorable treatment from the White House. The Commodity Futures Trading Commission has backed the industry's efforts to expand their products nationwide, including allowing sports-related contracts. Both companies have denied that their financial relationship with the Trump family influenced regulatory decisions under the current administration.