Prediction market platform Kalshi terminated its consulting contract with Donald Trump Jr. in response to the fact that his venture capital firm, 1789 Capital, also had a stake in rival platform Polymarket, according to Kalshi’s spokesperson.
Discussions about Trump Jr.’s departure began in August after 1789 Capital announced a major stake in Polymarket, the spokesperson said. It was a mutual agreement, with Kalshi and Trump Jr. recognizing that keeping the president’s son as an advisor while being a major investor in Polymarket constituted a conflict of interest, the spokesperson added.
Trump Jr.’s departure comes after Democrats gained majorities in the House and Senate, with the party expected to crack down on the prediction market industry. Although Trump Jr. has left Kalshi, he still serves as an advisor to Polymarket. Its industry ties could make prediction markets an easy target for lawmakers, Joseph Konizeski, a former CFTC lawyer, previously told CNBC.
In early October, Kalshi CEO Tarek Mansour said on MS NOW that Trump Jr.’s connection to the company created an “optics problem” but added that it had never relied on that relationship to curry favor with the government.
Kalshi first named Donald Trump Jr. as a strategic advisor to the company in January 2025.
Disclosure: CNBC and Kalshi have a business relationship that includes customer acquisition and minority investment.
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