How Peer-to-Peer Betting Changed the Market

Greg Kajewski
3 days ago
12 min read

Updated: 2 days ago

Peer-to-peer (P2P) betting is transforming sports betting by letting users bet directly against each other, cutting out traditional sportsbooks. Here's why it stands out:

Lower Costs: P2P platforms let you win more with each win compared to the high ~10% sportsbooks' vig. This makes bettors 20 times more likely to profit.
Better Odds: Odds are shaped by market demand, often offering higher returns, especially for underdogs.
Transparency & Control: Users set their own odds, stakes, and conditions, creating a fairer, more open system.
Social Interaction: Features like social feeds, leaderboards, and the ability to follow top bettors make betting more engaging and community-driven.
Regulatory Advantage: Many P2P platforms operate legally in states where traditional sportsbooks are restricted.

Quick Comparison: P2P Betting vs. Sportsbooks

Feature	Peer-to-Peer Betting	Traditional Sportsbooks
Commission/Vig	<1-2%	~10%
Odds Control	User-driven	Bookmaker-controlled
Profitability Rate	40%	2%
Social Features	Yes	Limited
High-Stakes Betting	Allowed (if liquidity)	Often Restricted

P2P betting platforms like BettorEdge are leading this shift, offering tools like no-vig betting, analytics, and social features. With the global online betting market projected to grow to $153.21 billion by 2029, P2P betting is poised to dominate the future of sports wagering.

How Peer-to-Peer Betting Works

Peer-to-peer (P2P) betting is changing the game for sports enthusiasts by offering a fresh alternative to traditional sportsbooks. Instead of betting against the house, P2P platforms create a marketplace where users place wagers directly against each other, reshaping how odds and profits are determined.

Direct User Matching

At the heart of P2P betting is a system that pairs users with opposing views on the same event. For example, if you’re confident the Kansas City Chiefs will win by more than 7 points, the platform connects you with someone who believes otherwise. This direct matching eliminates the need for a bookmaker to set odds or take on the risk.

On P2P platforms, users can choose between two roles: "backing" a bet (wagering on an outcome to happen) or "laying" a bet (wagering against that outcome). This dual approach gives bettors the flexibility to align their positions with their confidence in specific outcomes.

The matching process is often quick for popular events with high activity but may take longer for niche markets. Once matched, the wager is locked in, offering a transparent and straightforward betting experience compared to traditional models.

No-Vig Betting Model

One of the standout advantages of P2P betting is the elimination of the vigorish, or "vig" - the built-in house edge that traditional sportsbooks rely on. While sportsbooks typically charge a 10% margin, P2P platforms usually take less than 1-2% commission on winning bets.

Here’s why that matters:

Aspect	With Vig	Without Vig
Break-even Win Rate	52.4%	50.0%
True Probability Display	Inflated	Accurate
Average Returns	Lower	5-10% Higher
Profit Likelihood	2%	40%

Without the vig, you only need to win half your bets to break even, compared to the 52.4% required in traditional betting. Over time, this small shift makes a massive difference, with P2P bettors being 20 times more likely to turn a profit than those using sportsbooks. This model is a game-changer for anyone looking to maximize their betting potential.

Key Features of Peer-to-Peer Platforms

P2P platforms don’t just offer better odds - they come with features that redefine the betting experience. Customization is a major draw: users can set their own odds, stakes, and even specific conditions for their bets. This level of control allows for more strategic and personalized wagering.

Another advantage is better odds on underdogs. Since odds are shaped by market demand rather than a bookmaker’s calculations, underdog bets often yield higher returns on P2P platforms. This creates opportunities for savvy bettors to find and capitalize on value.

Social integration is also a growing trend in P2P betting. Many platforms now include features that let users follow successful bettors, share strategies, and build communities. This social element turns betting into a more interactive and engaging experience, moving it beyond a solitary activity.

As the market grows, P2P platforms are well-positioned to carve out a larger share of the betting industry by offering these unique advantages and experiences.

The Evolution of the Betting Market

Over the last ten years, the betting industry has undergone a massive transformation, moving from a house-controlled model to a more community-focused and user-driven ecosystem. This shift marks one of the biggest changes in gambling since the emergence of the modern sportsbook.

From Traditional Sportsbooks to Peer-to-Peer Platforms

For decades, traditional sportsbooks dominated the scene. They controlled the odds, set the margins, and left bettors with no option but to accept the terms - often including steep fees that made long-term wins nearly impossible.

Then came the rise of peer-to-peer (P2P) betting platforms, which introduced a game-changing approach. Instead of betting against a centralized house, users now place wagers directly against one another in a marketplace-style setup. This model cuts out the middleman, leading to more competitive pricing and better odds for bettors.

The impact of this shift has been profound with future outlooks showcasing betting markets that look more like a stock market than the traditional -110 lines at a spotsbook. This could mean typical spread bets include -101/+101 as users all around get better lines at they bet peer-to-peer.

This disruption has also paved the way for regulatory changes that have further fueled the market's growth.

Regulatory Changes and Market Expansion

The 2018 Supreme Court ruling that overturned the federal ban on sports betting was a pivotal moment for the industry. This decision allowed individual states to legalize sports betting, creating a patchwork of regulations that worked in favor of P2P platforms.

Unlike traditional sportsbooks, many P2P platforms operate as skill-based marketplaces as users must set their own odds to trade bets. This distinction allows them to function in states where conventional sportsbooks remain banned. As a result, these platforms have expanded rapidly into major markets. Today, some P2P platforms are legally active in over 40 U.S. states, including key markets like Texas and California where traditional sportsbooks are still prohibited.

The push for legalization has been further driven by states looking to boost tax revenues. According to Zion Market Research:

"the global sports betting market was valued at around $104.31 billion in 2017 and is expected to reach approximately $155.49 billion by 2024, growing at a healthy CAGR of 8.83% between 2018 to 2024."

This wave of regulatory changes has opened the door for unprecedented market growth.

Adoption Trends and Market Growth

With these regulatory shifts in place, adoption of online betting has surged. By 2024, the online betting market reached $93.26 billion, and projections suggest it will grow to $153.21 billion by 2029. Peer-to-peer and crypto-based betting platforms are leading this charge, growing at 20% to 30% annually, far outpacing the traditional market's 11% growth rate.

The potential for further growth is enormous. Studies show that more than half of Americans placed a bet on something in the past year, yet formal sports betting only accounts for a fraction of total wagering activity. In fact, the U.S. social betting market is estimated by Brain Flaherty via alts.co to be three times larger than the $120 billion formal sports betting market.

This shift toward community-driven betting is reshaping user expectations. Today’s bettors are drawn to platforms that emphasize social interaction, transparency, and community engagement over the solitary experience of traditional sportsbooks. This trend mirrors broader consumer preferences for decentralized, peer-to-peer services in other industries.

Advances in mobile technology and social integration have played a major role in this adoption. Many platforms now connect with popular tools like Telegram and Discord, making betting more interactive and social. The rise of mobile gaming infrastructure has also made it easier for users to place bets, track results, and engage with betting communities from anywhere.

The industry is just scratching the surface of its potential. Crypto casinos, for instance, have grown fivefold in recent years to $80 billion annually. Combined with P2P platforms offering better odds and user experiences, traditional sportsbooks are facing mounting competitive pressure. This evolution signals a shift toward a betting landscape where fairness, community, and user empowerment take center stage.

How BettorEdge is Shaping the P2P Betting Landscape

The peer-to-peer betting revolution has reshaped the industry, and BettorEdge is leading the charge. Processing millions of dollars in matched bets every month, the platform is proving that sports bettors are eager for a more open, community-driven experience.

But BettorEdge isn't just about placing bets. Its influence has been recognized across the industry, with accolades like the 2022 SBC Rising Star of the Year award and being named 2023 Minne Inno Best Company to Invest In. These achievements highlight the platform's role in redefining peer-to-peer betting. Let’s dive into how BettorEdge stands out in social betting, profitability, and user insights.

BettorEdge takes social betting to a new level. Every bet is instantly shared on a social feed, fostering transparency and community interaction. Users can follow successful bettors and even copy their picks, while a tipping feature rewards influencers with a share of winnings when their advice leads to successful bets.

The platform also enables head-to-head betting, where friends can challenge each other with free bets that settle automatically. Historical win/loss stats are tracked, adding an extra layer of fun and competition. BettorEdge supports public and private competitions, handling everything from dues to payouts with minimal fees, making it a great option for organizers looking to create engaging betting events. While these social features are impressive, BettorEdge’s approach to profitability is equally game-changing.

No-Vig Betting and User Profitability

One of BettorEdge’s standout features is its no-vig betting model, which removes the traditional 10% vig that sportsbooks typically charge. This change dramatically improves users' chances of turning a profit. In fact, BettorEdge users are 20 times more likely to be profitable, with a 40% profitability rate compared to just 2% for traditional sportsbook users.

Here’s a quick comparison: A bettor who wins 55% of their bets over 100 wagers of $100 each would earn about $500 in profit with traditional -110 odds. On BettorEdge, where bets are placed at even odds thanks to the no-vig model, that same bettor would pocket $1,000 - doubling their returns just by eliminating the house edge.

The platform’s peer-to-peer marketplace also empowers users to set their own odds and even sell bets back to the community at a price they choose. This level of control is something traditional sportsbooks simply can’t offer.

Analytics, Leaderboards, and Transparency

BettorEdge doesn’t stop at betting - it helps users improve their strategies with powerful tools. The platform’s analytics system provides detailed breakdowns of betting history by sport, helping users pinpoint where they’re winning or losing across leagues like the NFL, NBA, MLB, UFC, WNBA, PGA, and NCAA sports.

The leaderboards track key stats like ROI, win percentage, and streaks over both 7-day and 30-day periods. High-performing bettors can build a following, while newcomers can identify proven winners to follow for guidance.

For users looking to take their betting to the next level, premium features include access to external market pricing, advanced filtering tools, and API integration. Premium users also enjoy increased no-vig betting limits, from $100 to $750 per month.

The Future of Peer-to-Peer Betting

The global sports betting market is on track to hit a staggering $187.39 billion by 2030, with online betting alone projected to reach $163.78 billion by 2033. Peer-to-peer (P2P) betting platforms are poised to seize a significant slice of this growth as cutting-edge technologies reshape the way people bet. Let’s dive into the innovations driving this shift.

Technology Advances and New Features

Emerging technologies like artificial intelligence (AI) and blockchain are setting the stage for a more secure, engaging, and efficient P2P betting experience.

AI Takes Betting to the Next Level: AI-powered predictive analytics make smarter betting decisions possible. By analyzing historical data, player stats, and real-time game updates, AI delivers highly accurate predictions. The sports analytics market, projected to exceed $10 billion by 2028 with an annual growth rate of 21.8%, is fueling this trend. Platforms like BettorEdge already utilize advanced analytics to give users a competitive edge.
Blockchain for Transparency and Security: Blockchain technology addresses long-standing concerns in betting, such as counterparty risk and delayed payouts. With blockchain, transactions are instant, secure, and fully transparent, eliminating much of the friction seen in traditional betting systems.
Immersive VR and AR Experiences: Virtual and augmented reality are opening up new ways to engage users. Imagine placing bets while virtually sitting courtside at an NBA game or standing on the sidelines of an NFL match. These immersive experiences could redefine how bettors interact with games.
The Rise of Micro-Betting: Micro-betting, which allows wagers on specific in-game events like the next pitch in baseball or whether a basketball player will sink their free throw, is gaining popularity. This fast-paced, interactive betting style is particularly appealing to younger audiences craving dynamic experiences.

Platforms like BettorEdge are already leveraging these technologies to elevate user experiences and stay ahead in the competitive landscape.

Market Predictions and Growth Opportunities

The regulatory environment for sports betting is evolving rapidly, creating fresh opportunities for P2P platforms. With over 70–80% of all bets now placed via mobile devices, mobile-first platforms are more important than ever. BettorEdge’s focus on intuitive mobile apps aligns perfectly with this trend.

Regional Growth: Europe currently accounts for 41.3–48% of the global sports betting market, while the Asia-Pacific region is emerging as the fastest-growing area. This expansion opens doors for P2P platforms to introduce their commission-free models in regions traditionally dominated by sportsbooks.
The Crypto Boom: Cryptocurrency betting is on the rise, with crypto casinos now turning over $80 billion annually - a fivefold increase in recent years. While traditional betting markets grow at around 11% annually, crypto betting is accelerating at rates between 20% and 30%. Adding cryptocurrency options could attract tech-savvy users and provide more flexible payment methods.
Regulatory Expansion: Federal regulations are paving the way for broader adoption, with platforms now operating in over 40 states. This momentum sets the stage for even greater growth.

Expanding into New Betting Markets

P2P platforms have several promising avenues for growth, especially as they explore new markets and betting formats.

Esports Betting: With its interactive features and live streaming capabilities, esports betting is drawing younger audiences. Millennials and Gen Z, who are highly tech-savvy, align well with the community-driven nature of P2P betting.
Skill-Based Games: Platforms can tap into skill-based games, which often face fewer challenges compared to traditional gambling. This opens up opportunities in regions where conventional sports betting remains restricted.
Micro-Event Betting: Beyond game outcomes, P2P platforms can enable bets on individual plays, player performances, or other upcoming decisions. This real-time, granular approach to betting takes full advantage of the flexibility of the P2P model.
Global Expansion: Stepping into international markets requires a careful approach. Platforms must navigate local regulations with robust KYC (Know Your Customer) and AML (Anti-Money Laundering) protocols while working with legal experts to ensure compliance. Additionally, incorporating responsible gambling features - like deposit limits and self-exclusion tools - helps build trust and ensures long-term success.

The convergence of technological advancements, regulatory changes, and evolving user preferences is creating a prime opportunity for growth in the P2P betting space. Platforms that embrace AI-driven analytics, blockchain security, mobile-first design, and immersive features while staying compliant with regulations are set to thrive. BettorEdge is well-positioned to lead this charge, shaping the future of peer-to-peer betting.

Conclusion: Why Peer-to-Peer Betting is Changing the Game

Peer-to-peer (P2P) betting is reshaping the sports betting landscape by putting control back into the hands of users. Unlike traditional sportsbooks, where the house holds a significant edge, P2P platforms create a fairer environment, giving bettors a much stronger chance of achieving long-term success.

This shift in profitability comes down to how bets are structured. By removing the typical 10% vig (the fee sportsbooks charge to take bets), these platforms offer transparent, user-driven odds. Bettors can set their own odds or even sell their bets back to the community, creating a more dynamic and accessible way to engage with sports betting.

But it’s not just about the numbers - P2P betting has turned what used to be a solitary activity online back to the social experience it’s meant to be. Features like real-time social feeds, leaderboards, and the ability to follow successful bettors foster a sense of community. This user-first approach is redefining how people interact with sports betting.

The market reflects this momentum. The online betting industry is expected to grow from $93.26 billion in 2024 to $153.21 billion by 2029, with crypto betting seeing annual growth rates of 20–30%. A standout example is BettorEdge, which was named the 2022 SBC Rising Star of the Year. Its no-vig model, social betting features, and advanced analytics tools highlight the potential of P2P platforms. Operating legally in over 45 states, BettorEdge demonstrates how this model can scale while staying true to its user-focused principles.

Peer-to-peer betting is more than just a trend - it's a movement that prioritizes transparency, community, and user empowerment, setting a new standard for the industry.

FAQs

Why does peer-to-peer betting often provide better odds than traditional sportsbooks?

Peer-to-peer betting platforms stand out by offering better odds, primarily because they eliminate the house edge - also known as the "vig" - that traditional sportsbooks typically charge. Instead of dealing with fixed odds set by a bookmaker, users can negotiate directly with other bettors and set their own terms. This often leads to payouts that are 5-10% higher per wager compared to what you'd get with a traditional sportsbook.

What’s more, peer-to-peer betting creates a much better chance of turning a profit. Research indicates that up to 40% of users on betting exchanges end up making money, compared to a mere 2% of bettors using traditional sportsbooks. This is largely thanks to the open-market approach, which promotes fair competition and removes the bookmaker's built-in profit margin, giving players a much fairer shot.

Social Features on P2P Betting Platforms

Social features on peer-to-peer (P2P) betting platforms bring a new level of interaction and excitement to the betting experience. By enabling users to share bets in real time, follow experienced bettors, and engage in discussions, these platforms create a vibrant community. This not only makes the experience more enjoyable but also helps users pick up effective strategies along the way.

Social feeds play a big role here, offering a glimpse into trending bets and community opinions. This makes decision-making less solitary and more collaborative, as users can draw insights from others' activities.

On top of that, features like leaderboards and performance tracking add a competitive twist. They reward top performers while motivating others to sharpen their skills. These elements turn betting into more than just placing wagers - it becomes a lively, social experience that’s both fun and engaging.