TLDR Donald Trump Jr. reportedly pitched prediction markets to Republican state attorneys general at a March retreat in New Orleans. The White House shared its stance on state regulation with North Carolina lawmakers while they worked on prediction market legislation. North Carolina’s final budget added a 6% tax on prediction markets instead of banning them outright. Kalshi pushed back on the New York Times report, saying its answers were ignored. The CFTC has sued nine states over prediction market rules, and all nine are led by Democratic governors.
Donald Trump Jr. and the White House have both stepped into a growing fight between prediction market companies and state governments. A New York Times investigation found that Trump Jr. made a private pitch for prediction markets to Republican state attorneys general earlier this year.
The White House also reportedly shared its position on state regulation with lawmakers in North Carolina.
These moves add a political layer to a fight that has already spread through courts and statehouses across the country.
Trump Jr.’s Pitch to State Attorneys General
In early March, Trump Jr. spoke at a three-day retreat for Republican state attorneys general in New Orleans. He appeared alongside Montana Attorney General Austin Knudsen.
Montana was one of the first states to challenge Kalshi’s sports contracts. State regulators sent cease-and-desist letters before Kalshi sued Knudsen in federal court.
According to people familiar with the remarks, Trump Jr. argued that traditional gambling companies were pushing state officials to act against prediction markets to protect their own business.
He also described prediction markets as financial products that belong under federal oversight, not state rules.
Trump Jr. has financial ties to this industry. He joined Kalshi as a strategic adviser in January 2025 and received about $300,000 in company shares. He also