Prediction market platform Kalshi has ended its advisory relationship with Donald Trump Jr. after his venture capital firm significantly increased its investment in a competitor, Polymarket. The split was mutually agreed upon, with discussions beginning in August, according to Reuters.
Trump Jr.'s firm, 1789 Capital, led a funding round for Polymarket, investing $300 million over the summer. A Kalshi spokesperson confirmed the decision, stating, "We have mutually agreed to end Don’s advisory role after his firm’s significant investment in a competitor this past summer." The spokesperson added, "We are grateful for his contributions in helping us market Kalshi to more customers."
Donald Trump Jr. joined Kalshi as a "strategic advisor" in January 2025, receiving an equity stake valued at $300,000 at the time, according to the Financial Times. This partnership aimed to leverage his influence to attract more customers to Kalshi.
Prediction markets, like Kalshi and Polymarket, saw increased prominence during the 2024 presidential election, accurately signaling a Trump victory. This success led to criticism of traditional opinion polls and news outlets that failed to predict the outcome. The industry's rapid growth has also drawn scrutiny from Capitol Hill, with some lawmakers, such as Senator Elizabeth Warren, expressing concerns about insider trading and calling for stricter oversight. Kalshi is reportedly seeking a valuation above $40 billion, while Polymarket is aiming for over $20 billion.