Prediction market giant Kalshi said Thursday it has cut ties with Donald Trump Jr. over his venture capital firm increasing its stake in rival Polymarket.
Kalshi said it and Trump parted ways after his firm 1789 Capital led a major funding round for Polymarket and invested $300 million in it over the summer, as first reported by Reuters.
“We have mutually agreed to end Don’s advisory role after his firm’s significant investment in a competitor this past summer,” a Kalshi spokesperson told The Post.
“We are grateful for his contributions in helping us market Kalshi to more customers,” the spokesperson added.
The two sides began discussing going their separate ways in August, according to Reuters.
Trump Jr. was named a “strategic advisor” to Kalshi in January 2025 and received an equity stake valued at $300,000 at the time, according to a Financial Times report.
Prediction markets gained prominence during the 2024 presidential election after signaling a Trump victory, in contrast to traditional opinion polls.
Kalshi touted the accuracy of its forecasts after Donald Trump’s victory, criticizing traditional opinion polls and news outlets for failing to anticipate the election result.
The industry’s rapid rise has also attracted attention on Capitol Hill, where Democrats are threatening tougher scrutiny of the platforms.
Progressive Sen. Elizabeth Warren of Massachusetts has vowed to crack down on insider trading in prediction markets amid growing concerns about the industry’s oversight.
Kalshi has reportedly been in talks to raise funds and is eyeing a $40 billion valuation. Polymarket is reportedly aiming for a valuation above $20 billion.
Trump Jr. and Polymarket did not immediately respond to The Post’s requests for comment.