NewsMacroDonald Trump Jr. Urges State Attorneys General to Ease Up on Prediction Markets, Drawing Backlash

Donald Trump Jr. Urges State Attorneys General to Ease Up on Prediction Markets, Drawing Backlash

Author: Alternet·

Key Takeaways

  • •Donald Trump Jr. urged state attorneys general to ease regulation of prediction markets during remarks in New Orleans in early March.
  • •He argued that prediction markets are already subject to robust oversight and should be treated as a federally overseen financial tool.
  • •The New York Times said his comments aligned with the Trump administration’s message for states to back off prediction markets.
  • •Critics on X said the appeal raises conflict-of-interest concerns because of the Trump family’s financial ties to the prediction market sector.
  • •Katherine Long of The Wall Street Journal said nearly all state attorneys general have either sued prediction markets or said states have regulatory authority over them.
Donald Trump Jr. Urges State Attorneys General to Ease Up on Prediction Markets, Drawing Backlash

Donald Trump Jr., the eldest son of President Donald Trump, is making a legal appeal aimed at clearing a path for the Trump family's involvement in internet gambling and prediction markets — and the move is drawing strong reactions on X.

In early March, according to attorney Daniel Wallach, the younger Trump suggested that state attorneys general should ease up on regulating prediction markets. Wallach noted that Don Jr. "made a pitch to a crowd of Republican state attorneys general who had gathered for a three-day retreat at the Ritz-Carlton hotel in New Orleans."

The New York Times reported: "Sitting onstage for a question-and-answer session with Montana's attorney general, Mr. Trump suggested that state leaders were being led astray by a 'vested interest' — gambling firms that wanted to protect their 'monopolies' by attacking prediction markets, four people familiar with his remarks said. In reality, he said, the markets already had robust oversight, describing them as a sophisticated financial tool overseen by federal officials, not state attorneys general."

The Times described Don Jr.'s tone as "friendly," but said his remarks "dovetailed with a message" from President Trump's administration to "back off" prediction markets. The comments also land in an environment where state regulators have been asserting their own authority over the sector, setting up a continuing tension between federal oversight arguments and state-level gambling enforcement.

According to Wallach, Don Jr., "the president's eldest son, has repeatedly promised to keep his family's business interests separate from the work of the administration."

Other X users, however, are arguing that Don Jr.'s call for state attorneys general to "lay off" prediction markets amounts to a major conflict of interest for the second Trump administration.

More Perfect Union wrote on X: "The President's son is paid by Kalshi and Polymarket, and he's telling elected officials not to go after these companies."

RWC CEO Daniel Reinert tweeted: "family grift is CRAZY LARGE."

Katherine Long of The Wall Street Journal noted: "Though Don Jr. told the AGs to back off prediction markets, they appear not to have listened. Nearly all state attorneys general have now sued prediction markets or said publicly that states have regulatory authority over them."

Zubiqo pointed out: "The Trump family holds a financial stake in the prediction market sector. Federal preemption arguments won't stop state AGs when local gambling tax revenue is on the line."

Wade of Red Desk wrote: "Whether prediction markets deserve federal financial oversight instead of a state gambling patchwork is a fair question — but having the President's business-partner son personally lobby AGs to drop it is a bad way to make that case."