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Prediction market operator Kalshi is facing fresh scrutiny after reports revealed details of compensation paid to President Donald Trump’s eldest son, Donald Trump Jr., in the form of about $300,000 shares after he was handed a job at the company, according to the Financial Times.
Key Takeaways
- Donald Trump Jr. has reportedly received $300,000 in Kalshi shares after becoming a strategic advisor to the company.
- Trump Jr. was handed the shares when the company was valued at $2 billion, with the shares expected to rise after its latest $22 billion valuation.
- Kalshi and rival Polymarket have received beneficial regulatory decisions under the Trump administration.
The report alleged that Trump Jr. was awarded the shares in Kalshi after becoming a strategic adviser to the company in early 2025. At the time of the reported award, Kalshi’s valuation was below $2 billion, but it has risen substantially since then, perhaps as high as $22 billion, based on reports of last month’s funding round.
According to the FT, Trump Jr.’s holding could further increase if Kalshi completes another fundraising round for a reported valuation of around $40 billion, which could happen later this year. Neither Kalshi nor Trump Jr. has commented on the report so far.
Trump Jr. announced he was taking an advisory role with Kalshi shortly after his father’s return to the White House, saying that his family and associates had used Kalshi’s prediction markets during the 2024 election campaign rather than traditional news outlets.
The eldest Trump son also joined the advisory board of rival prediction market operator Polymarket in 2024, alongside an investment from 1789 Capital, where he is a partner.
Kalshi, in particular, has benefited from several regulatory decisions over the past few months, particularly those issued by Trump-backed agencies. Before the 2024 election, the Commodity Futures Trading Commission (CFTC) sought to block Kalshi’s election-related event contracts, but the group secured a court victory before Election Day. The CFTC ultimately dropped its appeal in May 2025.
Polymarket has also benefited from certain regulatory decisions, with the CFTC and Department of Justice closing an investigation last year into whether the operator accepted illegal wagers from U.S. customers despite being banned.
Kalshi challenges Illinois prediction market law
Meanwhile, Kalshi is continuing to fight several legal battles, including in Illinois, where the company has filed a lawsuit against Governor JB Pritzker, Attorney General Kwame Raoul, and other state officials over a bill that introduces new licensing requirements for prediction markets.
The company argues that the law, which is due to take effect on July 1, conflicts with federal regulation because Kalshi already operates as a federally regulated financial contract market under the Commodity Exchange Act.
In its complaint, Kalshi said that complying with the Illinois law would force it to restrict access for state residents, which could put it in conflict with federal requirements while also causing financial harm through compliance costs and lost business.
The dispute is part of a wider legal battle over whether prediction markets should be regulated at the federal level or by individual states. The CFTC has maintained that it has exclusive jurisdiction over federally regulated prediction market contracts, but many states argue that platforms such as Kalshi, on which 90% of trading is on sports, should be ruled by their gambling laws.
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