Kalshi Ends Trump Jr. Advisory Role: Why Polymarket Investment Forced Exit
Kalshi has ended Donald Trump Jr.'s advisory contract after his firm 1789 Capital put $300 million into rival Polymarket, in a mutual split agreed in August.
Image: Wikimedia Commons / Gage Skidmore from Surprise, AZ, United States of America
NEW YORK — Kalshi has ended Donald Trump Jr.'s advisory contract after his venture capital firm, 1789 Capital, deepened its investment in arch-rival Polymarket, the prediction-market company confirmed on Thursday, Nov. 12.
The split was mutual, according to a Kalshi spokesperson, and talks to end the arrangement began in August, when 1789 Capital led Polymarket's most recent funding round. Trump Jr. joined Kalshi as a strategic adviser in January 2025, shortly after his father returned to the White House for a second term, and received an equity stake then valued at about $300,000.
Key Takeaways
- Kalshi ended Donald Trump Jr.'s advisory contract on Nov. 12, calling the decision mutual after his firm 1789 Capital backed rival Polymarket.
- 1789 Capital committed about $300 million to a Polymarket funding round targeting $1 billion, valuing the rival at about $21 billion.
- Trump Jr. joined Polymarket's advisory board in August 2025; talks to end his Kalshi role began the same month.
- Kalshi said no political considerations factored into the decision, days after Democrats won both houses of Congress.
Why Did Kalshi End Donald Trump Jr.'s Advisory Contract?
"We have mutually agreed to end Don's advisory role after his firm's significant investment in a competitor this past summer," a Kalshi spokesperson said. "We are grateful for his contributions in helping us market Kalshi to more customers."
The conflict was direct. Kalshi and Polymarket run rival prediction markets where users trade contracts tied to real-world outcomes, including elections, sports and economic events. Trump Jr. sat on both sides of that rivalry: a paid adviser to Kalshi while his firm financed its biggest competitor.
Kalshi stressed that politics played no part in the call. The company said there were no political considerations behind the decision, which came days after Democrats won control of both houses of Congress in the Nov. 3 midterm elections.
How Much Did 1789 Capital Invest in Polymarket?
In September, 1789 Capital agreed to contribute about $300 million toward a Polymarket financing round targeting $1 billion. The round would value Polymarket at about $21 billion, up from close to $15 billion before the deal.
It was not the firm's first bet on the rival. 1789 Capital had earlier invested about $200 million in Polymarket, taking its total commitments toward the round to roughly $500 million. Trump Jr., a partner at 1789 Capital, joined Polymarket's advisory board in August 2025, after the firm's initial investment.
What Happens Next for Kalshi, Polymarket and Prediction Markets?
The split lands as prediction markets face growing legal and political pressure in the United States. Operators face disputes over state gambling laws and federal oversight of event contracts, and Kalshi was warned earlier this year that it could face charges from the Commodity Futures Trading Commission.
| Company | Valuation | Trump Jr. role | Status |
|---|---|---|---|
| Kalshi | About $40 billion | Advisory contract ended Nov. 12 | Regulated US exchange |
| Polymarket | About $21 billion | Trump Jr. on advisory board since Aug. 2025 | Crypto-based rival |
Investors are watching both companies closely. Kalshi is in talks to raise funds at a valuation of about $40 billion, while Polymarket is aiming for a valuation above $20 billion. The new Democratic-controlled Congress, which convenes in January, is expected to press companies with close White House ties, and prediction markets are likely to be part of that examination.
Frequently Asked Questions
Why did Kalshi cut ties with Donald Trump Jr.?
Kalshi ended the advisory contract because Trump Jr.'s firm, 1789 Capital, deepened its investment in rival Polymarket. The company called the decision mutual and said talks to end the role began in August, when 1789 Capital led Polymarket's latest funding round.
How much did 1789 Capital invest in Polymarket?
1789 Capital agreed to put about $300 million into a Polymarket funding round targeting $1 billion, which would value the company at about $21 billion. The firm had earlier invested about $200 million, taking its total commitments to roughly $500 million.
Did Donald Trump Jr. join Polymarket's advisory board?
Yes. Trump Jr., a partner at 1789 Capital, joined Polymarket's advisory board in August 2025, after the firm's initial investment in the company. He had joined Kalshi as a strategic adviser in January 2025.
Are prediction markets legal in the United States?
Prediction markets operate under federal oversight, but they face disputes over state gambling laws and the scope of event contracts. Kalshi is a regulated exchange overseen by the Commodity Futures Trading Commission.
Neither Polymarket nor Trump Jr. had responded to requests for comment as of Thursday evening.
