Kalshi, the world’s largest prediction market, has dropped Donald Trump Jr. as an advisor. The president’s son joined Kalshi as a strategic adviser in January 2025, shortly before his father’s return to the White House. He joined rival Polymarket’s advisory board that August, when his venture capital firm, 1789 Capital, invested in the company.

Relations between Kalshi and the junior Trump reportedly cooled after his Florida-based venture capital firm 1789 Capital led a new round of funding for Polymarket in late August.

“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 Gizmodo over email. “We are grateful for his contributions in helping us market Kalshi to more customers.”

The company stressed that it’s been discussing this move internally since August, when 1789’s investment in Polymarket became known publicly. But the timing still raises plenty of questions about whether Kalshi may be trying a different approach to fighting regulators with a shift in the political headwinds.

It’s unclear why Kalshi would wait over two months after news of 1789’s investment to suddenly break ties. One possibility is that Kalshi no longer feels quite so protected by the Trump regime, which radically reshaped the Commodity Futures Trading Commission (CFTC) to favor prediction markets after he returned to power. The agency has spent much of the year defending prediction markets against state regulators, but its own investigation into Kalshi suggests that protection has limits.

Numerous states have sued Kalshi , alleging that it is operating an illegal gambling business.

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