Kalshi Ends Donald Trump Jr.'s Paid Advisory Role, Citing His Firm's Bigger Polymarket Stake

Donald Trump Jr. is no longer a paid adviser to Kalshi, the prediction market company said today, Nov. 12.

Kalshi spokesperson Dani Lever called it a mutual decision. "We have mutually agreed to end Don's advisory role after his firm's significant investment in a competitor this past summer," Lever said. "We are grateful for his contributions in helping us market Kalshi to more customers."

What Kalshi says happened

The competitor is Polymarket. Trump Jr.'s venture firm, 1789 Capital, increased its stake there in August as part of Polymarket's latest fundraising round. Kalshi says that investment started the conversation about ending his contract, and that talks began in August.

A Kalshi spokesperson told CNBC both sides agreed it was a conflict of interest to keep the president's son as an adviser while he was a top investor in Polymarket. Trump Jr. still serves as an adviser to Polymarket. A representative for him did not immediately respond to a request for comment from the Daily Beast.

Kalshi named Trump Jr. a strategic adviser in January 2025, shortly after his father's second inauguration. The Financial Times reported at the time that he received roughly $300,000 worth of Kalshi shares. He has been a Polymarket investor since August 2025.

The political backdrop

The announcement lands a week after Democrats took control of the House and the Senate in the midterms. Democrats have said they plan to investigate the Trump family's investments, including their relationships with both prediction market companies. Starting next year, a Democratic majority will have the power to compel testimony and demand documents.

Sen. Jeff Merkley, an Oregon Democrat, told Politico: "We need to rein in this gambling, and with Democrats taking back control of Congress, now is the time for long-overdue legislative action." He cited bets on elections, war, assassinations and terrorism.

Sen. Elizabeth Warren, a Massachusetts Democrat who is poised to chair the Senate Banking Committee, has questioned the "legitimacy and regulation" of election-related prediction markets. She raised it in a letter to Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan. Sen. John Curtis, a Utah Republican, co-authored that letter.

Joseph Konizeski, a former CFTC trial attorney, previously told CNBC that Trump Jr.'s ties to the industry could make prediction markets an easy target for lawmakers.

Regulation and the denials

The Commodity Futures Trading Commission has backed the industry's push to expand products nationwide, including letting customers trade sports-related contracts. The Daily Beast reports the administration has also sued states trying to ban the markets under anti-gambling laws.

Both companies have adamantly denied that the financial relationship between Kalshi, Polymarket and the Trump family played any role in how the industry has been regulated under this administration. No investigation, charge or finding of wrongdoing tied to those relationships has been announced.

Mansour acknowledged the problem in early October. Speaking on MS NOW, he said Trump Jr.'s connection to Kalshi creates an "optics issue." He added that the company has never relied on that relationship to gain favor with the government.

The timing question has two documented answers. Kalshi says the split was set in motion in August, months before the election. The election result, meanwhile, changed who will hold subpoena power in January. Kalshi has not said the election played any role, and no source ties the two together.

Both platforms have grown sharply in the past two years. Several major sports leagues, including the NBA, MLB, NHL and MLS, have deals with Kalshi, Polymarket or both.

What comes next

Trump Jr.'s exit from Kalshi does not end the family's footprint in the industry. He remains an adviser to Polymarket, and 1789 Capital's expanded stake there is the reason for today's announcement. Whether the new Democratic majority, with Warren expected to lead Senate Banking, targets that holding when it takes office is the open question.