Kalshi ends advisory contract with Donald Trump Jr over rival investment
The prediction market startup terminated the agreement after Trump Jr's venture capital firm led a funding round for competitor Polymarket.
The $40 billion prediction markets startup Kalshi has ended its advisory contract with Donald Trump Jr, according to reports from The Economic Times and the New York Post. The decision follows an investment made by Trump Jr's venture capital firm, 1789 Capital, into rival platform Polymarket.
A Kalshi spokesperson stated that the company and Trump Jr mutually agreed to end his advisory role after his firm made a significant investment in a competitor this past summer. The spokesperson added that the company is grateful for his contributions in marketing Kalshi to more customers.
Conversations to end the contract reportedly began in August after 1789 Capital led the most recent funding round for Polymarket. The New York Post noted that the firm invested $300 million in the competitor over the summer.
Trump Jr was named a strategic advisor to Kalshi in January 2025. At that time, he received an equity stake in the company valued at $300,000, as reported by the Financial Times.
Prediction markets gained prominence in 2024 by signaling a Trump victory, diverging from traditional opinion polls. Kalshi previously criticised traditional media and polls for failing to anticipate the election result.
The industry now faces potential scrutiny from US Democrats. Senator Elizabeth Warren has vowed to crack down on insider trading within prediction markets.
