Prediction markets have gained increasing popularity in the U.S. Businesses in this sector are booming as government regulators reach out in favorability under the Trump administration.

This growth has greatly increased the value of Donald Trump Jr.’s stake in the prediction market platform Kalshi.

Advisory Role Brings Big Gains

According to the Financial Times, Trump Jr. joined Kalshi as a strategic adviser in early 2025. In lieu of such an investment, he received company stock valued at approximately $300,000. Kalshi was less valued than $2 billion at that time.

Kalshi raised new funds last month and its value went up to $22 billion. Although the new shares mean that Trump Jr.’s stake was reduced slightly, the size of the company’s valuation rise means his stake is worth a whole lot more.

The Kalshi expansion could be underway. The company is already in talks to raise more funds in the third quarter of 2025, pushing its valuation to $40 billion.

Prediction Markets Get Regulatory Support

Kalshi lets users trade on yes-or-no outcomes. People can bet on political elections, economic reports or sports results.

Kalshi and its largest rival, Polymarket, were highly popular in the 2024 election season. Today both sportsbooks move billions of dollars on a monthly basis with sport wagering being a primary driver for both.

The industry is also enjoying improved government support. Prior to the 2024 elections, the Commodity Futures Trading Commission (CFTC) attempted to prevent Kalshi from providing contracts after congressional elections. But, hours before the elections, Kalshi prevailed in court.

A second positive industry development in May of 2025 was the CFTC’s dropping of its appeal. Regulators, who recently investigated have also affected Polymarket.

Strong Industry Connections and Future Growth

Trump Jr. is no stranger to the prediction market world. He praised these platforms in January 2025 stating that they predicted his father’s election victory before anyone else.

He is also a 1789 Capital Partner and member of its Advisory Board at Polymarket, a company in which 1789 Capital took its first strategic investment.

In late May 2025, Kalshi made further strides in the global financial market by launching cryptocurrency perpetual trading.

Meanwhile, Kalshi is still dealing with a number of lawsuits from a few states in the United States stemming from sports-based contracts, but the prediction market is rapidly expanding as an industry.