Prediction market Kalshi cuts ties with Trump's son following Polymarket funding

Kalshi has ended its advisory contract with Donald Trump Jr after his venture capital firm 1789 Capital increased its stake in arch-rival Polymarket, according to a spokesperson for the $40 billion prediction markets startup.The Democratic sweep of both houses of US Congress in the midterm elections could bring more scrutiny of companies over links to the White House. Democrats have said they plan to use investigative powers on US President Donald Trump's family business ties.Kalshi had named Trump Jr a "strategic advisor" in January 2025. Trump Jr was given a stake in the company that the Financial Times reported at the time was worth $300,000."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," the spokesperson said, adding that the conversations to end the contract started in August since 1789 led Polymarket's most recent funding round.The Kalshi spokesperson said that there were no political considerations that factored into the decision. Two sources familiar with the matter said there had been some concerns raised within the company about potential ramifications of the Democratic sweep.Trump Jr.