Kathrine Frich
The president’s son holds direct financial connections to the exact companies he defended.
When a new industry bursts onto the scene with massive profits, government officials usually rush in to set the ground rules.
But sometimes, powerful voices quietly push back against those standard regulations.
The dynamic shifts entirely when a presidential family gets involved.
Behind closed doors
Donald Trump Jr. recently delivered a highly specific request to top Republican legal officials. He wants state attorneys general to stop cracking down on online prediction markets.
According to The New York Times cited by The Irish Star, the president’s son made his case during a spring meeting in New Orleans. Four unnamed sources noted his argument that standard gambling companies simply want to protect their own monopolies.
He insisted that existing federal rules provide plenty of oversight for platforms like Kalshi and Polymarket. His defense, however, comes with a heavy personal interest attached.
A personal stake
The president’s son holds direct financial connections to the exact companies he defended. He joined Kalshi as an adviser early last year.
He also sits on the board at Polymarket. The original report indicates he holds a financial stake in that platform through his investment firm, 1789 Capital.
While he argues against local rules, state leaders across the political map are aggressively fighting back. Dozens of states want these platforms classified and regulated as standard sports betting operations.
States fight back
In July, officials from 44 states signed a joint letter condemning the prediction industry as a dangerous new casino model. Arizona even filed criminal charges against Kalshi in March for running an unauthorized gambling operation.
Connecticut is currently suing Kalshi to block unlicensed sports wagers. State Attorney General William Tong made his position perfectly clear regarding the law.
“Sports event contracts are no different than sports betting and are not magically shielded by federal law from Connecticut’s commonsense consumer protection laws,” Tong said. He added that the state is suing because the platform fails to protect minors or secure personal funds.
Billions at risk
Connecticut Governor Ned Lamont accused the prediction markets of prioritizing cash over safety.
“They have made it clear their goal is profits over people, and that’s why we are holding them accountable,” Lamont explained in a public statement.
The stakes involve massive amounts of public money. The Tax Foundation estimates that state governments lose out on roughly $2 billion in tax revenue every single year because these platforms bypass local gambling rules.
Meanwhile, the federal Commodity Futures Trading Commission actually sued several Democratic-led states to stop their regulatory actions. The legal battle is likely heading to the Supreme Court, where the White House will almost certainly defend the prediction companies.
Sources: The Irish Star, The New York Times, Tax Foundation
