Kalshi ends advisory contract with Donald Trump Jr. amid conflict-of-interest concerns
Prediction-market platform Kalshi terminated its advisory agreement with Donald Trump Jr. after his venture-capital firm took a stake in rival Polymarket, citing a conflict of interest.
Kalshi announced that it has ended its advisory contract with Donald Trump Jr., the son of the U.S. president, after his venture-capital firm 1789 Capital acquired a significant stake in competing prediction-market platform Polymarket. The company said the decision was mutual, noting that maintaining the advisory role would have presented a conflict of interest while Trump Jr. was a top investor in Polymarket.
The discussions about Trump Jr.'s departure began in August, following the public disclosure of 1789 Capital's investment in Polymarket. Kalshi’s spokesperson said both parties agreed that the arrangement was no longer appropriate.
The move comes as Democrats have taken control of both chambers of Congress and are expected to increase scrutiny of the prediction-market industry. While Trump Jr. is no longer advising Kalshi, he continues to serve as an advisor to Polymarket, a fact that could draw further regulatory attention, according to former CFTC trial attorney Joseph Konizeski.
Kalshi CEO Tarek Mansour told MS NOW in early October that Trump Jr.'s association created an "optics issue," but emphasized that the company had never relied on the relationship to influence government officials. Kalshi first appointed Trump Jr. as a strategic advisor in January 2025.
"Trump Jr.'s connection to the company creates an 'optics issue,'" Mansour said.
The disclosure notes a commercial relationship between CNBC and Kalshi that includes customer acquisition and a minority investment.