Most probably. It's about the current US president after all, and it's the closest thing to an official forum/social network his fanbase/supporters have.

If Reddit banned it, then they'd likely drive said users to a competitor (like Voat) and divert all that media attention from Reddit to said competitor in the process.

T_D went to voat already back when I still used it (I gave up because they refused to add the ability to mute users), they couldn't handle it for even a week.

IMO, reddit banning t_d would create much more serious issues for them. The last thing they want is to get attention as a possible campaign financer. Even tho political choice is not a protected category and it's not illegal for reddit to ban t_d, since t_d clearly defines itself as rally sub for president, t_d mods follow rules and ban offending accounts quickly, and, most importantly, President Trump filed his campaign for 2020. with FEC almost immediately after becoming president.

Banning t_d could be construed as political speech, and a form of political donation. And reddit most definitely doesn't want legal inquiries of that kind, I bet they have a lot of dirty laundry there - did you guys forget how "cleanly" /r/politics switched overnight (literally) from bernie central to hillary propaganda?

They most definitely want to ban it, as demonstrated in leaked logs from private admin chat some time ago, but they do not dare.

I think that's probably it, or at the very least part of it. TD has been a well-trafficed subreddit for a long time, and that means ad revenue.

Around the time of the comment-editing fiasco I remember a couple of other subreddits' mods saying the admins were quite friendly to the TD mods on the Reddit mod discourse. I wouldn't be surprised, considering the behavior they constantly got away with.