Prediction market Kalshi cuts ties with Trump's son following Polymarket funding

Kalshi has ended its advisory contract with Donald Trump Jr. after his venture capital firm 1789 Capital increased its stake in rival Polymarket. The decision was mutually agreed, with discussions starting in August. A Kalshi spokesperson said no political considerations factored in, but sources cited concerns about Democratic Congressional scrutiny.

Kalshi, a $40 billion prediction markets startup, has ended its advisory contract with Donald Trump Jr. after his venture capital firm 1789 Capital increased its stake in rival Polymarket. The decision was mutually agreed, with discussions starting in August when 1789 led Polymarket's most recent funding round. A Kalshi spokesperson said there were no political considerations, but two sources said concerns about potential ramifications of the Democratic sweep of Congress were raised internally. Kalshi had named Trump Jr. a strategic advisor in January 2025, paying him equity worth $300,000. The article notes that prediction markets face heightened scrutiny in Congress, with Democrats planning to investigate President Trump's family business ties.