Kalshi cuts ties to Donald Trump Jr after Democrats’ midterm sweep
Prediction-market platform Kalshi has terminated its paid advisory agreement with Donald Trump Jr. after his firm, 1789 Capital, increased its investment in rival Polymarket. Multiple outlets confirm the split was driven by a direct competitive conflict, not political pressure. The move follows Democrats' sweep of the 2026 midterms, which reshaped the regulatory outlook for event-based derivatives.
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- ✓ Kalshi terminated Donald Trump Jr.'s paid advisory contract.
- ✓ The termination was due to a conflict of interest arising from 1789 Capital's increased investment in Polymarket.
- ✓ Kalshi's board voted unanimously to end the relationship.
- ✓ The decision followed the Democratic sweep of the 2026 U.S. midterm elections.
What changed
Kalshi formally severed its advisory relationship with Donald Trump Jr. citing his firm's expanded investment in competitor Polymarket.
Live updates
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Kalshi ends Donald Trump Jr advisory contract over Polymarket conflict
Prediction-market platform Kalshi has terminated its paid advisory agreement with Donald Trump Jr. after his firm, 1789 Capital, increased its investment in rival Polymarket. Multiple outlets confirm the split was driven by a direct competitive conflict, not political pressure. The move follows Democrats' sweep of the 2026 midterms, which reshaped the regulatory outlook for event-based derivatives.
Why it matters
Kalshi and Polymarket are the two largest U.S.-facing prediction markets, both seeking CFTC approval for expanded election and economic contracts. Trump Jr. joined Kalshi's advisory board in 2024 to help navigate Washington. His family office's deepening stake in Polymarket created an irreconcilable conflict, prompting Kalshi's board to act unanimously. The midterm results accelerated the decision by shifting Senate committee leadership toward stricter oversight of political betting markets.
What is confirmed
- Kalshi terminated Donald Trump Jr.'s paid advisory contract.
- The termination was due to a conflict of interest arising from 1789 Capital's increased investment in Polymarket.
- Kalshi's board voted unanimously to end the relationship.
- The decision followed the Democratic sweep of the 2026 U.S. midterm elections.
Still unconfirmed
- Trump Jr. may retain an equity stake in Kalshi despite losing the advisory role.
- Polymarket is preparing a formal CFTC application for political-event contracts within weeks.
What to watch next
- CFTC action on Kalshi's and Polymarket's pending election-contract applications
- Senate Banking Committee hearing schedule under new Democratic leadership
- Any public statement from Donald Trump Jr. or 1789 Capital on the split
confidence 92%Sources used for this update (9)
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- Reuters — EXCLUSIVE: Kalshi ends Donald Trump Jr's advisory contract due to Polymarket conflict
- The New York Times — Kalshi Severs Its Relationship With Donald Trump Jr.
- The Washington Post — Kalshi parts ways with Trump Jr. after his firm deepens its Polymarket bet
- The Guardian — Donald Trump Jr exits as paid adviser for prediction market Kalshi
- Financial Times — Kalshi cuts ties to Donald Trump Jr after Democrats’ midterm sweep
- CNBC — Donald Trump Jr. exits advisory role at Kalshi prediction market
- menafn.com — Kalshi Ends Trump Jr. Advisory Role After Polymarket Investment, Reuters - Business & Financial
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