Donald Trump Jr steps down as Kalshi adviser

Kalshi stated that the decision was reached by mutual agreement following his investment in rival platform Polymarket. The development comes as Democrats announced plans to investigate the Trump family's business dealings, according to a Bloomberg report published on Thursday (12 November).

Exit follows midterm shift and rival investment

According to the report, Trump Jr's departure from Kalshi surfaced after Republicans suffered a major setback in the midterm elections, allowing Democrats to secure control of both chambers of Congress. Democrats have pledged to scrutinise the Trump family's financial ties across prediction markets and the cryptocurrency sector.

Trump Jr had served as an official adviser to both Kalshi and its primary competitor, Polymarket. While his venture capital firm, 1789 Capital, invested in Polymarket, he received equity in Kalshi as compensation for his advisory work.

"We have mutually agreed to end Don's advisory role after his firm's significant investment in a competitor this past summer. We are grateful for his contributions in helping us market Kalshi to more customers," a Kalshi spokesperson told Bloomberg.

Background and political scrutiny

Kalshi had announced Trump Jr's appointment shortly before Donald Trump was sworn in for his second presidential term. At the time, the company described him as a "fan of the industry" who would advise strictly on marketing strategy rather than regulatory matters.

The platform gained widespread attention during the 2024 US presidential election when its prediction markets showed high odds of a Trump victory, even as traditional opinion polls pointed to a tight race.

Opposition to prediction markets has largely come from Democrats, though several Republicans have also voiced concerns regarding the industry.