Kalshi ends Trump Jr.'s advisory role after his firm boosts stake in rival Polymarket

Kalshi, a prediction market company, said Thursday that Donald Trump Jr. is no longer a paid adviser. The company called it a "mutual business decision" that followed a move by his investment firm, 1789 Capital, to increase its stake in Kalshi's biggest competitor, Polymarket ¹.

A prediction market lets people bet money on whether future events will happen, such as election results or sports outcomes.

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What Kalshi said

Kalshi spokesperson Dani Lever gave the company's explanation ¹. Kalshi also said no political considerations factored into the decision, according to Reuters ².

We have mutually agreed to end Don's advisory role after his firm's significant investment in a competitor this past summer.

Trump Jr. became a "strategic advisor" to Kalshi in January 2025, shortly after his father's second inauguration ¹². He was paid in equity, or ownership shares. The Financial Times reported at the time that the stake was worth $300,000 ².

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1789 Capital has invested in Polymarket since August 2025. It increased that stake in August of this year as part of Polymarket's latest fundraising round ¹. Reuters reported that Kalshi began discussing the conflict once the investment became public, and reached out to Trump Jr. in the fall ².

Why the timing draws attention

Two sources told Reuters that some people inside Kalshi had raised concerns about the Democratic sweep. Their worry was that having the president's son as an adviser could invite scrutiny from Congress ². Kalshi denied that politics played a role ².

Trump Jr. did not immediately respond to Reuters. Polymarket and a 1789 Capital representative declined to comment ².

Democrats took control of the House and Senate in the midterm elections. They have said they plan to investigate the Trump family's investments, including ties to both prediction markets ¹².

Democrats were already pressing the issue before this week. On Monday, Sens. Elizabeth Warren of Massachusetts and Jeff Merkley of Oregon wrote to White House counsel Will Scharf about a former Trump teleprompter operator, Gabriel Perez, who allegedly profited on Kalshi. They asked what safeguards stop staff from betting on confidential government information, and set a Nov. 23 deadline for answers ³.

sports betting disguised as financial trading.

What happens next

The reports describe no hearings or filings yet. Reuters said several efforts to rein in prediction markets are advancing in Congress after well-timed bets this year raised insider-trading questions ². One bill, from Sen. Chris Murphy and Rep. Greg Casar, would ban bets on military operations and other sensitive government actions ².

The industry has a friendly regulator. The Commodity Futures Trading Commission, which oversees these markets, has backed efforts to expand them nationwide, including sports-related contracts. Both companies have denied that ties to the Trump family influenced how the industry is regulated ¹.

That matters because ending one advisory contract does not change the Trump family's financial stake in the industry. 1789 Capital remains invested in Polymarket ¹².

The Record

1. Jan 1, 2025Kalshi names Donald Trump Jr. a strategic adviser; he is paid in equity the Financial Times reported was worth $300,000 ².
2. Aug 1, 20261789 Capital increases its Polymarket stake in the company's latest funding round, and Kalshi begins discussing the conflict ¹².
3. Nov 9, 2026Sens. Warren and Merkley write to White House counsel about an ex-Trump staffer's alleged Kalshi profits, with answers due Nov. 23 ³.
4. Nov 12, 2026Kalshi says it mutually agreed with Trump Jr. to end his advisory role ¹².

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<h2>Kalshi ends Trump Jr.&#39;s advisory role after his firm boosts stake in rival Polymarket</h2> <p><em>By The GOP Files Investigations Desk. This article first appeared on <a href="https://thegopfiles.com/story/kalshi-ends-trump-jr-s-advisory-role-after-his-firm-boosts-stake-in-rival-polymarket">The GOP Files</a> on Thursday, November 12, 2026.</em></p> <p>Kalshi, a prediction market company, said Thursday that Donald Trump Jr. is no longer a paid adviser. The company called it a &quot;mutual business decision&quot; that followed a move by his investment firm, 1789 Capital, to increase its stake in Kalshi&#39;s biggest competitor, Polymarket .</p> <p>A prediction market lets people bet money on whether future events will happen, such as election results or sports outcomes.</p> <h2>What Kalshi said</h2> <p>Kalshi spokesperson Dani Lever gave the company&#39;s explanation . Kalshi also said no political considerations factored into the decision, according to Reuters .</p> <blockquote><p>We have mutually agreed to end Don&#39;s advisory role after his firm&#39;s significant investment in a competitor this past summer.</p><p>&mdash; Dani Lever, Kalshi spokesperson</p></blockquote> <p>Trump Jr. became a &quot;strategic advisor&quot; to Kalshi in January 2025, shortly after his father&#39;s second inauguration . He was paid in equity, or ownership shares. The Financial Times reported at the time that the stake was worth $300,000 .</p> <p>1789 Capital has invested in Polymarket since August 2025. It increased that stake in August of this year as part of Polymarket&#39;s latest fundraising round . Reuters reported that Kalshi began discussing the conflict once the investment became public, and reached out to Trump Jr. in the fall .</p> <h2>Why the timing draws attention</h2> <p>Two sources told Reuters that some people inside Kalshi had raised concerns about the Democratic sweep. Their worry was that having the president&#39;s son as an adviser could invite scrutiny from Congress . Kalshi denied that politics played a role .</p> <p>Trump Jr. did not immediately respond to Reuters. Polymarket and a 1789 Capital representative declined to comment .</p> <p>Democrats took control of the House and Senate in the midterm elections. They have said they plan to investigate the Trump family&#39;s investments, including ties to both prediction markets .</p> <p>Democrats were already pressing the issue before this week. On Monday, Sens. Elizabeth Warren of Massachusetts and Jeff Merkley of Oregon wrote to White House counsel Will Scharf about a former Trump teleprompter operator, Gabriel Perez, who allegedly profited on Kalshi. They asked what safeguards stop staff from betting on confidential government information, and set a Nov. 23 deadline for answers .</p> <blockquote><p>sports betting disguised as financial trading.</p><p>&mdash; Ro Khanna, U.S. Representative, Democrat-California</p></blockquote> <h2>What happens next</h2> <p>The reports describe no hearings or filings yet. Reuters said several efforts to rein in prediction markets are advancing in Congress after well-timed bets this year raised insider-trading questions . One bill, from Sen. Chris Murphy and Rep. Greg Casar, would ban bets on military operations and other sensitive government actions .</p> <p>The industry has a friendly regulator. The Commodity Futures Trading Commission, which oversees these markets, has backed efforts to expand them nationwide, including sports-related contracts. Both companies have denied that ties to the Trump family influenced how the industry is regulated .</p> <p>That matters because ending one advisory contract does not change the Trump family&#39;s financial stake in the industry. 1789 Capital remains invested in Polymarket .</p> <p><em>Read the original, with every source linked, at <a href="https://thegopfiles.com/story/kalshi-ends-trump-jr-s-advisory-role-after-his-firm-boosts-stake-in-rival-polymarket">thegopfiles.com</a>. Republished under The GOP Files' <a href="https://thegopfiles.com/republish">free republishing terms</a>.</em></p> <img src="https://thegopfiles.com/api/rp/kalshi-ends-trump-jr-s-advisory-role-after-his-firm-boosts-stake-in-rival-polymarket.gif" alt="" width="1" height="1" style="border:0;width:1px;height:1px">

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Sources

1. AP (via KIRO 7), “Kalshi confirms Donald Trump Jr. departure after Polymarket investment” (2026-11-12). kiro7.com/news/technology/donald-trump-jr/QWU6OJZMXIZ5XLUV4A
2. Reuters (via Yahoo Finance), “Exclusive-Kalshi says it ended Donald Trump Jr's advisory contract over Polymarket conflict” (2026-11-12). finance.yahoo.com/markets/crypto/articles/exclusive-kalshi-s
3. Fortune, “Democrats press White House on prediction market betting by staff” (2026-11-10). fortune.com/2026/11/10/democrats-white-house-prediction-mark

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