Kalshi ends Trump Jr advisory role as 1789 Capital raises Polymarket stake
Kalshi has terminated its advisory contract with Donald Trump Jr, ending a relationship that began in January 2025. His venture capital firm, 1789 Capital, recently increased its investment in rival prediction market Polymarket. The departure resolves a conflict of interest between the two CFTC-regulated platforms. Trump Jr remains an advisor to Polymarket. The move was confirmed Thursday, November 12. No financial terms were disclosed.
The split exposes how politically wired advisory roles become liabilities when capital flows to competitors. Kalshi now faces the same Congress that Trump Jr was hired to influence, without his access. His continued Polymarket role funnels political relationships toward Kalshi's closest rival at a moment when both platforms are under bipartisan scrutiny.
Senators Warren and Curtis have demanded internal trading data under deadline. Kalshi's $40 billion valuation and market-share lead give it more to lose from regulatory friction than from the advisory loss itself. The episode signals that political staffing carries counterparty risk in a sector where regulator attention and competitive investment move faster than contract cycles.
Joins a stretch of Kalshi coverage centered on volume records, felony exposure in Utah and four state suits, and the $40 billion Series G funding round that arms its legal and product expansion fights.