Kalshi ends Donald Trump Jr advisory contract over Polymarket investment
Prediction market operator Kalshi has terminated its advisory arrangement with Donald Trump Jr after his venture capital firm led a $1bn funding round for main rival Polymarket.
By Lakshya Mishra, YourKhabri Desk1 min readKalshiPolymarketDonald Trump JrPrediction MarketsRegulation
Key takeaways
- 1Kalshi ended its advisory contract with Donald Trump Jr over his firm's investment in Polymarket.
- 2Trump Jr's 1789 Capital led a $1bn funding round for Polymarket, contributing about $300m.
- 3The funding round valued Polymarket at $21bn.
- 4Trump Jr joined Kalshi in January 2025 with an equity stake worth $300,000.
- 5Louisiana became the 13th state to sue prediction platforms including Kalshi and Polymarket for illegal gambling.
Prediction market operator Kalshi ended its advisory relationship with Donald Trump Jr after his venture capital firm increased its investment in rival platform Polymarket, the company said. Trump Jr joined Kalshi as a strategic adviser in January 2025 and received an equity stake valued at $300,000 at the time.
A Kalshi spokesperson said discussions about ending the contract began in August after Trump Jr’s venture firm, 1789 Capital, led a $1bn funding round for Polymarket. The funding round valued Polymarket at $21bn, with 1789 Capital contributing about $300m. Kalshi said both parties mutually agreed to end the arrangement.
Trump Jr joined Polymarket’s advisory board in August 2025, when 1789 Capital made its initial investment in the competitor. Kalshi said political considerations played no role in the decision, though people familiar with the matter said some within Kalshi raised concerns about political exposure after Democrats won control of Congress in midterm elections.
The split comes as prediction market operators face growing legal pressure from US state authorities, who claim the platforms operate illegal gambling services. Louisiana Attorney General Liz Murrill filed a lawsuit in state court against Kalshi, Polymarket and several other operators, seeking an immediate restraining order and an injunction.
Louisiana is the 13th state to bring enforcement action against prediction market platforms. Utah regulators have filed civil claims and criminal charges against Kalshi over local offerings, while legal challenges from New Jersey and Robinhood over state gambling laws are currently before the US Supreme Court.
Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.