Kalshi drops Donald Trump Jr. as adviser because he is also a Polymarket investor

Prediction market Kalshi has ended its advisory contract with Donald Trump Jr., CNBC reported on Thursday, citing a Kalshi spokesperson. Reuters ran the same news under the headline that Kalshi ended the contract "due to Polymarket conflict".

What Kalshi says happened

According to CNBC, the spokesperson described a mutual arrangement. Kalshi and Trump Jr. both agreed that keeping the president's son as an adviser was a conflict of interest while he serves as a top investor in Polymarket, its rival. His venture capital firm, 1789 Capital, holds a stake in Polymarket, and CNBC says talks about his exit began in August after the firm increased that stake.

Trump Jr. has left Kalshi but still advises Polymarket, CNBC reported. CNBC also disclosed that it has a commercial relationship with Kalshi that includes customer acquisition and a minority investment. We did not receive a statement from Trump Jr. in the reporting we read, and we have not seen the terms of the contract.

Why the timing matters

CNBC links the exit to politics. It says the departure follows Democrats securing majorities in the House and Senate, and quotes a former CFTC trial attorney, Joseph Konizeski, saying Trump Jr.'s ties to the industry could make prediction markets an easy target for lawmakers. CNBC also cites a comment made on MS NOW that the connection creates an "optics issue", alongside a statement that the company has never relied on the relationship to gain favor with the government. We could not confirm from the text we read who made that comment, so we do not attribute it further. That is the reporting, not our assessment.

The two platforms already face pressure on several fronts. Kalshi was reportedly warned this week that the CFTC may bring charges over how it notified the agency of new contracts (our report). New York has sued Polymarket US, calling it an unlicensed gambling operation (our report). A federal judge also let stock perpetual futures keep trading while saying the CFTC likely overstepped (our report).

What it changes for users

Nothing about contracts, fees or trading changes with an advisory contract ending, and neither company has said otherwise. For anyone who trades or builds on event contracts, the practical point is regulatory: the industry's regulators and legislators are shifting, and each platform is now managing its own exposure. Our look at how thin many prediction-market contracts are is a useful companion read.

We will update this story if Kalshi, Polymarket or Trump Jr. publish their own statements.

Sources: CNBC, Nov. 12, 2026; Reuters headline, Nov. 12, 2026 (full text was not available to us); Seeking Alpha. This is market information, not investment advice.