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An increased investment in Polymarket by Donald Trump Jr.’s firm, 1789 Capital, prompted Kalshi to end his advisory contract, the company said, according to Yahoo Finance. Kalshi described the decision as mutual and said discussions began in August.
Kalshi cites investment in a competitor
Kalshi named Trump Jr. a strategic adviser in January 2025. He received a stake in the company that the Financial Times reported was worth $300,000 at the time, according to Yahoo Finance.
The company said conversations about ending the contract started after 1789 Capital led Polymarket’s most recent funding round. Kalshi contacted Trump Jr. during the fall to discuss the conflict of interest.
“We have mutually agreed to end Don’s advisory role after his firm’s significant investment in a competitor this past summer. We are grateful for his contributions in helping us market Kalshi to more customers,” a Kalshi spokesperson told Yahoo Finance.
Company denies political motivation
The spokesperson said “there were no political considerations that factored into the decision.”
Separately, two people familiar with the matter told Yahoo Finance there had been concerns within Kalshi about potential ramifications of Democrats winning both houses of Congress in the midterm elections. A third source said Kalshi had hired Trump Jr. to help market the company to conservative audiences, including the MAGA movement.
Prediction markets also face scrutiny on Capitol Hill. Sen. Elizabeth Warren has vowed to crack down on insider trading on the platforms. Sen. Chris Murphy and Rep. Greg Casar introduced a bill to ban prediction-market bets on military operations and other sensitive government actions, according to Yahoo Finance.
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Source: As reported by Yahoo Finance.
