Kalshi ends Donald Trump Jr.'s advisory role as political climate shifts

Kalshi, the leading prediction-market platform, said it has ended Donald Trump Jr.'s role as a strategic adviser. The decision follows a late-summer investment by his venture-capital firm, 1789 Capital, in competitor Polymarket.

A Kalshi spokesperson told Gizmodo that the parties "mutually agreed to end Don’s advisory role after his firm’s significant investment in a competitor this past summer" and added that the company was "grateful for his contributions in helping us market Kalshi to more customers."

Kalshi noted that internal discussions about the move began in August, when 1789 Capital's investment became public. The timing has prompted speculation about whether the company feels less protected by the current administration, which has taken steps to support prediction markets through the Commodity Futures Trading Commission (CFTC).

The CFTC has been defending prediction-market operators against state-level challenges, but recent reports indicate it may be pursuing enforcement actions against Kalshi for alleged procedural lapses. State lawsuits alleging illegal gambling activity continue, with Utah filing criminal charges against Kalshi and its co-founders.

The broader regulatory environment may evolve after the recent midterm elections, which saw Democrats gain control of both chambers of Congress. Kalshi CEO Tarek Mansour has contributed to both Democratic and Republican political committees, according to Federal Election Commission filings.