PredictIt

PredictIt is a New Zealand-based online prediction market that offers exchanges on political and financial events. PredictIt is owned and operated by Victoria University of Wellington with support from Aristotle, Inc. The market was launched on 3 November 2014. PredictIt's office is located in Washington, D.C.
History.
PredictIt was launched on 3 November 2014. By March 2016, the website had approximately 29,000 active traders. The nonprofit educational project of the Victoria University of Wellington, New Zealand, "had to work around federal laws that prohibit online gambling and govern commodity futures trading." During the 2016 United States elections, PredictIt, along with other prediction market websites, received attention from various media outlets.
Trading format.
PredictIt uses a continuous double auction to sell shares for each event in its markets, meaning that for every person who predicts that an event will take place, there must be another person who predicts that it will not. The site groups related predictions into a market. Operating expenses are covered by charging a fee of 10% on earnings in excess of the original investment and by charging an additional 5% withdrawal fee.
Rules and limits.
Victoria University of Wellington secured a no-action letter from the Commodity Futures Trading Commission, eliminating the risk of prosecution for illegal online gambling. In order to secure the no-action letter, each question is limited to 5,000 traders, and there is an $850 cap on individual investments per question. These restrictions are modeled after the Iowa Electronic Markets, which previously secured a no-action letter from the Commodity Futures Trading Commission. However, there are differences in the restrictions between the two markets.
Data-sharing program.
PredictIt offers a data sharing program for members of the academic community. PredictIt has over 160 data partners, including researchers affiliated with the Massachusetts Institute of Technology, Harvard University, Yale University, Duke University, the University of Pennsylvania, the University of California, Berkeley, the University of Michigan, and the University of Virginia.
Better Business Bureau rating.
As of April 2021, PredictIt holds an F rating with the Better Business Bureau, and it has not been accredited.