{"id":282316,"date":"2023-07-24T13:32:40","date_gmt":"2023-07-24T18:32:40","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=282316"},"modified":"2023-07-24T13:45:54","modified_gmt":"2023-07-24T18:45:54","slug":"court-ruling-keeps-predictit-online","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/court-ruling-keeps-predictit-online\/","title":{"rendered":"Court Ruling Keeps PredictIt Online\u00a0"},"content":{"rendered":"<p>A federal court is allowing PredictIt to keep its political futures markets online while it pursues litigation against a federal agency trying to shut the site down.<\/p>\n<figure id=\"attachment_282320\" aria-describedby=\"caption-attachment-282320\" data-style=\"width: 858px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-post-thumbnail-858xAUTO wp-image-282320\" src=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/07\/predictit-screenshot-858x639.jpg\" alt=\"\" width=\"858\" height=\"639\" srcset=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/07\/predictit-screenshot-858x639.jpg 858w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/07\/predictit-screenshot-430x320.jpg 430w, https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/07\/predictit-screenshot.jpg 935w\" sizes=\"(max-width: 858px) 100vw, 858px\" \/><figcaption  id=\"caption-attachment-282320\"class=\"text-description\">A screen capture of PredictIt&#8217;s home page on July 24. A federal court recently allowed the political futures exchange to remain online while litigation continues. (Image: PredictIt)<\/figcaption><\/figure>\n<p>The US Fifth Circuit Court of Appeals panel Friday ruled that the PredictIt and its users were ultimately likely to prevail in their lawsuit against the Commodity Futures Trading Commission. In a 2-1 decision, the judges ordered a lower court to prevent the CFTC from taking any further action against PredictIt until it decides the merits of the case.<\/p>\n<p>\u201cThis is a sweeping victory for prediction markets like PredictIt and those who find value in the insights they provide,\u201d PredictIt co-founder and CEO, John Phillips said in a statement. \u201cOne of the highest courts in the country agrees that in 2014 PredictIt was issued a license to operate, and the CFTC\u2019s attempts to take that away were unjustified.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Great news from the Fifth Circuit today! <a href=\"https:\/\/t.co\/deEMt7HVn9\">https:\/\/t.co\/deEMt7HVn9<\/a> <a href=\"https:\/\/t.co\/RzMs5lKnbz\">pic.twitter.com\/RzMs5lKnbz<\/a><\/p>\n<p>&mdash; PI (@PredictIt) <a href=\"https:\/\/twitter.com\/PredictIt\/status\/1682591603721125888?ref_src=twsrc%5Etfw\">July 22, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2>District Court to Decide<\/h2>\n<p>The case now goes back to the United States District Court for the Western District of Texas for a trial on the merits. The case was brought by PredictIt and a group of users who argued that the CFTC violated due process requirements when it withdrew prior assurances that PredictIt would not be subject to enforcement action.<\/p>\n<blockquote class=\"main-blockquote\"><p>We now conclude that a preliminary injunction was warranted because the CFTC\u2019s rescission of the no-action letter was likely arbitrary and capricious,\u201d Fifth Circuit Judge Stuart Kyle Duncan wrote in the <a href=\"https:\/\/www.courthousenews.com\/wp-content\/uploads\/2023\/07\/fifth-circuit-predict-it-order.pdf\">majority opinion<\/a> issued Friday.<\/p><\/blockquote>\n<p>The ruling is the latest milestone in a years-long fight over whether PredictIt can continue to operate without registering with the CFTC. The site was launched at Victoria University in Wellington, New Zealand, and allows users to wager on the outcome of elections and other political events.<\/p>\n<h2><b>\u2018No-Action\u2019 Letter<\/b><\/h2>\n<p>When PredictIt was launched in 2014, Victoria University sought and received from the CFTC a \u201cno-action letter,\u201d which absolved it from having to register as a regulated marketplace under the Commodity Exchange Act. The university said the political betting markets would produce valuable data for academic research and that it would limit the size of its markets to 5,000 participants and cap bets at $850.<\/p>\n<div class=\"callout\">\n<p>Eight years after agreeing to spare PredictIt from oversight, the CFTC abruptly reversed course in August 2022, rescinding the 2014 \u201cno-action letter\u201d and ordering it to liquidate its operations within six months.<\/p>\n<\/div>\n<p>In response, PredictIt and a group of site users <a href=\"https:\/\/www.casino.org\/news\/predictit-seeks-injunction-allowing-political-futures-trading-to-continue-past-feb-15\/\">sued the CFTC<\/a>, and they were previously able to <a href=\"https:\/\/www.casino.org\/news\/predictit-gets-reprieve-for-now-as-feb-15-liquidation-deadline-halted\/\">win a reprieve<\/a> from the CFTC\u2019s efforts to shutter the site by February.<\/p>\n<h2><b>Parties \u2018Continue to Spar\u2019<\/b><\/h2>\n<p>Following that ruling and oral arguments in the underlying case, the CFTC <a href=\"https:\/\/www.casino.org\/news\/cftc-takes-new-direction-in-attempt-to-shut-down-predictit\/\">changed course<\/a> in March and sought to end the litigation by replacing its August 2022 action with a new \u201cpreliminary\u201d decision on the no-action letter. The CFTC\u2019s Division of Market Oversight maintained the view that the earlier no-action letter was invalid, but it said PredictIt had an opportunity to argue its case.<\/p>\n<p><strong>Duncan rejected the CFTC\u2019s argument that its March letter made the case moot.<\/strong><\/p>\n<p>\u201cThe parties continue to spar over whether PredictIt can operate outside the CEA\u2019s strictures \u2026 The fact that Victoria University can try to change the DMO\u2019s mind does not change the fact that the DMO has declared the no-action letter \u2018void,\u2019\u201d the judge wrote in his opinion.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A federal court is allowing PredictIt to keep its political futures markets online while it pursues litigation against a federal agency trying to shut the site down. The US Fifth Circuit Court of Appeals panel Friday ruled that the PredictIt and its users were ultimately likely to prevail in their lawsuit against the Commodity Futures [&hellip;]<\/p>\n","protected":false},"author":102,"featured_media":282320,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[61,16693],"tags":[82218,86145,82190],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Court Ruling Keeps PredictIt Online\u00a0 - Casino.org<\/title>\n<meta name=\"description\" content=\"A federal court is allowing PredictIt to keep its political futures markets online while it pursues litigation against a federal agency trying to shut the A federal court is allowing PredictIt to keep its political futures markets online while it pursues litigation against a federal agency trying to shut the site down.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/court-ruling-keeps-predictit-online\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Court Ruling Keeps PredictIt Online\u00a0 - 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