Trump Jr. Exits Kalshi Advisory Role as Novig Appeals New York Injunction Denial

Donald Trump Jr. is stepping down from his role as an advisor to Kalshi, less than two weeks after Democrats took control of Congress in the midterm elections. The decision comes as Democrats in both the House and Senate are expected to scrutinize President Trump’s family ties to crypto and prediction market companies.

Trump Jr. has been an advisor to Kalshi and Polymarket since 2025. The Financial Times reported that his stake in Kalshi was worth $300,000 in January 2025. His firm, 1789 Capital, invested $200 million in Polymarket before adding another $300 million over the summer. A Kalshi spokesperson attributed the change to the Polymarket investment.

“We have mutually agreed to end Don’s advisory role after his firm’s significant investment in a competitor this past summer,” the spokesperson told Bloomberg. “We are grateful for his contributions in helping us market Kalshi to more customers.”

Nevada Democratic Senator Catherine Cortez Masto criticized Commodity Futures Trading Commission Chairman Michael Selig for serving the Trump family’s interests. Masto wrote that the “move to undermine tribal and state sovereignty is intended to create profits for the president’s family.” “That should outrage all of us,” Masto wrote.

Novig Appeals Ruling Denying Injunction Against New York Regulators

Novig has filed a notice of appeal to the U.S. Court of Appeals for the Second Circuit after U.S. District Court Southern District of New York Judge Colleen McMahon denied its request for a preliminary injunction against New York Attorney General Letitia James and state gaming regulators. In her 35-page ruling, McMahon found that Novig’s sports-event contracts are bets on sports and not financial derivatives, or swaps, protected by federal law.

McMahon rejected the argument that federal law preempts state gaming regulations. She questioned the CFTC’s position in its October Notice of Proposed Rulemaking, writing that the agency “did not identify any differences between sports-related event contracts and sports wagering contracts, such that one would qualify as a ‘swap’ while the other would not.”

Novig began offering sports-related event contracts in New York in August after Ludlow Exchange LLC received CFTC designation as a contract market in June. The New York State Gaming Commission views the activity as sports betting, which requires a license the company lacks. Novig had previously obtained a sports betting license in Colorado in late 2023.

This coverage draws from reporting by CDC Gaming.