Exclusive-Kalshi says it ended Donald Trump Jr’s advisory contract over Polymarket conflict

Kalshi, a $40 billion prediction markets startup, has terminated its advisory contract with Donald Trump Jr. following the venture capital firm 1789 Capital's significant investment in Polymarket, a competitor. Trump Jr. was named a strategic advisor to Kalshi in January 2025, receiving an undisclosed stake in the company valued at $300,000 at the time.

The decision to end the contract was mutually agreed upon after Kalshi learned of 1789 Capital's investment in Polymarket in August. Despite concerns raised by some within Kalshi about potential congressional scrutiny due to the Democratic sweep of both houses of Congress, the company firmly stated that no political considerations influenced their decision.

Kalshi had initially contracted Trump Jr. to market the platform to a conservative audience, including the MAGA movement, offering him equity in return for his guidance. A Polymarket spokesperson declined to comment on the matter, while Trump Jr. and a representative for 1789 Capital also declined to provide statements. The incident highlights the increasing regulatory scrutiny faced by prediction markets, with Senator Elizabeth Warren and others proposing stricter regulations and bans on certain types of bets.