Kalshi, the leading U.S. prediction‑market platform, announced on November 12, 2026 that it had terminated its advisory agreement with Donald Trump Jr. The move came after his venture‑capital firm, 1789 Capital, expanded its stake in Polymarket, a direct competitor to Kalshi. Both parties said the split was mutual and was discussed since the summer following 1789 Capital’s lead role in Polymarket’s most recent funding round.

Update, Nov 13, 00:40 UTC: Reuters reported, via Cointelegraph, that 1789 Capital led Polymarket’s $1 billion funding round, contributing roughly $300 million and valuing the company at about $21 billion.

Conflict of interest triggers contract end

According to a Reuters report cited by CoinGape, Kalshi’s decision was driven by the perceived conflict of interest created by 1789 Capital’s investment in Polymarket. Donald Trump Jr. had joined Kalshi’s advisory board in January 2025, shortly after President Trump took office, and later took a seat on Polymarket’s advisory board in August 2025. Kalshi said the increased stake in its rival made it untenable for the former to continue serving both platforms.

The termination occurs as Kalshi and other prediction‑market operators face heightened scrutiny from state regulators. Utah has sued Kalshi and its market makers for allegedly offering illegal gambling to state residents, and Louisiana’s attorney general filed a suit on the same day, naming Kalshi, Polymarket and several other platforms as defendants. Louisiana’s AG Liz Murrill called the action “the first time a state has joined essentially every prediction‑market platform as defendants.”

What to watch next

Industry observers expect further legal challenges, with two related cases already pending before the U.S. Supreme Court involving New Jersey and Robinhood. The outcome of these suits could shape the regulatory landscape for prediction markets nationwide and influence future partnerships between political figures and crypto‑related firms.

FAQ

Why did Kalshi end Donald Trump Jr.'s advisory role?

Kalshi said the increased investment by his firm 1789 Capital in rival Polymarket created a conflict of interest, leading to a mutual decision to end the contract.

What legal actions are prediction‑market platforms facing?