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Donald Trump Jr.’s departure from Kalshi comes after his investment firm, 1789 Capital, made fresh investments in competing prediction market platform Polymarket, raising questions about conflicts of interest and regulatory scrutiny.
Prediction market platform Kalshi has ended Donald Trump Jr.’s advisory role after his investment firm deepened its financial ties with rival platform Polymarket.
The company announced the decision on Thursday, saying the move followed 1789 Capital’s significant investment in a competitor. Trump Jr. had served as a strategic adviser to Kalshi, helping the platform expand its customer base and market presence.
“We have mutually agreed to end Don’s advisory role after his firm’s significant investment in a competitor this past summer,” a Kalshi spokesperson said, adding that the company was grateful for his contributions.
Trump Jr.’s investment firm, 1789 Capital, first backed Polymarket in August 2025, when he also joined the prediction market’s advisory board. The firm subsequently made another investment in Polymarket in August 2026. According to Kalshi representatives, the latest investment prompted discussions that eventually resulted in his departure.
The development comes at a time when prediction markets are facing growing political and regulatory scrutiny in the United States. Democrats are expected to push for greater oversight of platforms such as Kalshi and Polymarket, particularly over questions surrounding regulatory jurisdiction, unusual trading activity and potential insider trading.
Prediction markets allow users to trade contracts based on the likelihood of future events, ranging from political elections to economic developments. Their growing popularity has also intensified concerns about market transparency, potential manipulation and the use of privileged information.
More from BusinessKalshi had announced Trump Jr.’s appointment as an adviser shortly before his father, Donald Trump, was inaugurated as US president in January 2025.
At the time, the platform highlighted Trump Jr.’s remarks about how prediction markets had helped the campaign gauge the outcome of the 2024 presidential election.
His exit now underscores the increasingly competitive landscape in the prediction market industry, where business interests, political connections and regulatory questions are becoming closely intertwined.
