In March 2026, Donald Trump Jr. advised Republican state attorneys general not to oppose prediction markets, according to a New York Times report. Speaking at an event in New Orleans, he argued that states were being misled by gambling companies concerned about losing their exclusive control over certain betting markets. Trump Jr. also recommended that federal authorities, rather than states, should regulate event contract exchanges.

Trump Jr. has advisory roles with Kalshi and Polymarket, the two largest prediction market platforms, and contributes to their marketing strategies but not regulatory matters. His comments emerged amid ongoing legal disputes, as multiple states challenge federal authority over the regulation of sports-related prediction markets. The Commodity Futures Trading Commission (CFTC) has sued nine states to prevent them from imposing regulations on these platforms.

The battle over regulatory authority has intensified, with 44 states opposing the CFTC’s jurisdiction and seeking to exert their own control. Kalshi has publicly defended its operations, distinguishing itself from gambling enterprises and criticizing state efforts to shut down federally licensed platforms. The company also highlighted its lobbying activities aimed at influencing state legislation, such as securing a lower tax rate on prediction markets compared to sportsbooks.

Trump Jr.’s spokesperson downplayed the significance of his remarks, stating that he briefly addressed the topic during a one-minute Q&A at a Republican Attorneys General Association conference. Both the White House and 1789 Capital, where Trump Jr. is a partner, did not immediately comment on the report. The ongoing regulatory conflict highlights tensions between state and federal authorities over the emerging prediction market industry.