The betting world is an ever changing one. We’re constantly seeing progress, especially in a less than fully developed online gambling landscape such as that of the US. New sportsbooks are hitting American shores, such as Betfred Sports, a huge UK betting firm that has recently made a splash in the US market.
We’re also seeing newer concepts such as peer-to-peer betting. Known as exchange betting or person-to-person betting in other parts of the world, p2p betting is far from an entirely new concept. In fact, in Europe, it’s been big for many years, yet in the US, it remains an almost completely unexplored avenue on the betting marketplace.
In recent times, this type of betting has hit the US as another option to using traditional bookmakers. Prior to the beginning of the 2022 NFL season, the Prophet Exchange opened its virtual doors for business.
How does Peer-to-Peer Betting Work?
Perfect for those tired of the old-fashioned sportsbook experience, peer-to-peer wagering is betting with a difference. Traditionally, the sports bettor would bet against a sportsbook. The sportsbook would lay the odds for a sports event and the bettor had to choose whether to accept them or not.
With peer-to-peer gambling, you’re not betting against a traditional sportsbook, you’re betting against other individuals, whose money makes up the betting market for whichever event it is that you’re betting on.
Previously, you had to choose whether or not you wanted to bet on something to happen. For instance, say you want to bet on the San Francisco 49ers to win against the Kansas City Chiefs. If you wanted to bet on the San Francisco 49ers not to win, the only way that you could do that was by betting on the opposition to emerge victorious. Now, you can bet on the 49ers to lose by laying them on a betting exchange. To lay means to bet on something not to win.
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Thanks to peer-to-peer betting, players can essentially adopt the role of the sportsbook, and they do this by laying a bet, which essentially means to offer odds to another bettor.
With peer-to-peer wagering, you have ‘lay’ betting and ‘back’ betting. This is much like buying and selling on the stock exchange. If you’re laying, you’re selling, and if you’re backing, you’re buying. To lay means to bet against something happening. To back means to bet that something will happen.
So, as touched on above, if you want to bet on a team to lose, you can lay them. This allows somebody who wants to bet on the same team to win the bet against you. Conversely, if you want to bet on a team to win, you can do so and bet against a player who wants to bet them to lose.
Peer-to-peer gambling is just sports gambling against like-minded sports bettors. What’s not to like?
Differences between a betting exchange & a sportsbook
With a typical online sportsbook, customers can place their own bet, choose their preferred bet type and wager on their favorite teams and leagues. You can place bets from the odds set by the operator and your betting activity takes place according to the terms set by the betting site. However, on a betting exchange, you and other users set your own conditions, which is why the customer base for these types of sites is growing.
For example, you might see the following line for an NFL game:
- Philadelphia Eagles -4.5
- Dallas Cowboys +4.5
This sees the Eagles as the favorites, and although you agree, you may not like the size of the spread. So, you post the following bet on an exchange to see if there is any takers:
- Philadelphia Eagles -2.5
- Dallas Cowboys +2.5
If someone likes this, both sides will put up their agreed-upon stake. When the game is over, the winner receives most of the money, and the exchange takes a fee for helping put together the wager.
Can You Legally Bet Peer-to-Peer in the US?
As things currently stand in the murky waters of US gambling, there is just one sports betting exchange that is fully legal. This means that there is just one online outlet for peer-to-peer bettors to get some action and do so legally.
And it’s not as simple as there being just one outlet, as the only online betting exchange that offers p2p betting, right now, is only available to those in New Jersey. This means that the vast majority of the US continues to go without a viable peer-to-peer betting route.
However, after the launch of the first online betting exchange the US has ever seen, it’s clear that the gambling market is becoming more advanced, so one could easily become two. There are indeed plans for further exchanges to launch, but whether that becomes a reality remains to be seen.
Prophet Exchange has announced plans to expand into other US states, so if you’re not in New Jersey and are looking for peer-to-peer wagering, then waiting for Prophet to launch its platform in multiple states is probably your best bet.
Those who are currently in the state of New Jersey can visit the Prophet Exchange site and register their interest. Prophet Exchange will then get in touch with details on launching in your state, as shown below.
Peer-to-Peer Betting Arrives in the US With First Exchange!
As the summer nights began to draw in, and as the new NFL season got underway, the US got its first-ever legal peer-to-peer betting exchange. Say hello to prophetbettingexchange.com.
Back at the start of September, Prophet Exchange opened its online doors to New Jersey sports bettors, becoming the first website of its kind in US gambling history.
US gamblers looking to bet on sports now have some true variation. No longer would they have to play exclusively with sportsbooks.
Players also have the opportunity to legally engage in sports trading, or arbitrage betting, which is similar to trading on a stock exchange. As touched on above, instead of buying and selling stocks, on a betting exchange, players simply back and lay bets.
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Those who trade on a sports exchange aim to back at one price and lay at another, ensuring that a profit is made regardless of the sports result. This is the same principle as those who look to buy commodities at a low price and then sell at a high price.
If you’re looking to simply bet on sports but in a different way, then the Prophet Exchange is the platform for you.
At Prophet Exchange, you’ll be betting against other players, not against Prophet Exchange itself. The exchange is simply a platform that facilitates bets between individual players.
The markets are formed by players. So, for example, let’s say that you want to bet on the New Orleans Saints to win at the Arizona Cardinals. The odds are +116, but you don’t want to take those. You want +120. Now at a traditional sportsbook, you’d either have to take the available odds or not place a bet. On an exchange, you can request a back bet at your desired odds, enter your stake, and then if somebody is willing to lay your bet, you will get a match and your bet will be placed.
All you need to do is click on the +116 on the New Orleans Saints like this:
Doing so will bring up the betslip on the right hand side. Use the arrows to change the price to +120 and then request those odds by attempting to place the bet. As shown below.
Your bet will remain unmatched until somebody lays +120. This way you can ensure that you only bet at your chosen price, rather than taking odds you deem to be too low.
P2P Sports Markets
Currently, p2p bettors can back and lay bets on NFL, College Football, MLB, NBA and NHL.
Due to the infancy of the site, there is a lack of markets right now, though more markets are expected to be added soon. At present, for the NFL, you can bet on Moneyline, Spread, and Total Points.
When it comes to the NBA, again, there’s Moneyline, Spread and Total Points. The same goes for MLB and NHL.
Joining A P2P Betting Exchange
Joining Prophet Exchange is quick and easy. If you’re in New Jersey, simply visit the site and hit the ‘JOIN TODAY’ button.
After doing so, all you need to do is enter your first name, last name, email address, before creating a password for your new account. You’ll then go to another page to enter more personal details such as address.
Registering should take only a few minutes and then you’ll be free to explore the world of peer-to-peer betting.
P2P Betting Bonuses
Upon joining, new Prophet Exchange players will receive a welcome bonus. This comes in the form of a risk-free bet match up to $250.
So, if you register and make an initial lost bet of $125, you’ll receive $125 back. Not bad at all. The Prophet Exchange welcome bonus will be credited to new accounts roughly five minutes after their first bet settles.
There’s also a ‘Refer a Friend’ bonus. Existing players who refer a friend will receive $50 in Prophet Exchange bet credits, as will the referred friend once they complete their registration and meet any necessary requirements.
Types of Peer-to-Peer Betting & Exchanges
Prophet Exchange is the first dedicated p2p sports betting exchange that the US has ever seen. However, there are other betting exchanges in the world, plus in the US, there are some other sites that fit into the peer betting category.
Daily Fantasy Sports are hugely popular in the US, and that’s partly because of the social aspect. They’re also a form of peer-to-peer wagering. Players pay to enter contests and compete against other players. The aim is to finish as high as possible and thus claim more prize money. As such, sites such as Draftkings and FanDuel do offer a form of p2p gambling, they just don’t do so the same way as a dedicated p2p sports betting site does.
Across the world, there are plenty of peer-to-peer betting exchanges, some of which are reported to be interested in entering the US gambling market. For example, you have sites such as Betdaq, a popular UK betting exchange, and Matchbook, who offer great p2p betting options in territories outside the US. There’s also Betfair, which is widely known as the world’s largest betting exchange. Betfair is hugely popular in both the UK, Asia, and Australia.
In the US, you’ve also got ZenSports, who offer what can only be described as a hybrid sportsbook. ZenSports use blockchain technology, which means that players play using a digital token known as ‘SPORTS’. Bettors can deposit in dollars to obtain this token, and can then bet against either the house or other players.
Alternative Peer-to-Peer Betting Apps
While Prophet Betting is certainly the only site to offer pure peer-to-peer sports betting in the US, there are some social betting apps available.
This is a sports betting app with a twist. Available to both iOS and Android users, WagerLab is a peer-to-peer mobile betting platform. You can bet against friends and create and participate in fantasy leagues.
There are lots of markets and sports to bet on, including NBA, NHL, MLS, MLB, NFL, as well as UFC, and many others. You can also propose prop bets to your friends and bet, while social multiples/parlays are available too.
Another app in the peer-to-peer betting space is the appropriately named PeerBet. This mobile betting app allows players to play for fun, and it’s free. It’s basically an app where you can put your predictions against your friends to see who’s better at calling the game without conducting any real money betting. iPhone and Android users can make friendly bets on politics and entertainment events too.
Advantages and Disadvantages of Peer-to-Peer Sports Betting
As with anything, peer-to-peer gambling has its advantages and its disadvantages, though the pros certainly outweigh the cons.
Here are the advantages of peer-to-peer sports betting:
Pro: Better odds
You’ll often receive more favorable odds on a legalized sports betting exchange. Why? There’s no sportsbook margin applied, which means that when you bet against other bettors on the exchanges, the odds you’ll receive are often greater than those being offered by traditional sports betting sites.
Pro: Request your own odds
Not happy with the odds you see on the sportsbook? Visit a peer-to-peer site. Still want bigger odds? No problem, as you can request the price you want and wait until somebody with the opposing opinion is willing to lay those odds, thus giving you a better bet. Who doesn’t want more competitive odds?
Pro: No restrictions
In the world of online gambling, the operators aren’t in the business of losing. This means that clever sports bettors often have their accounts restricted or closed by sportsbooks. This doesn’t happen on a peer-to-peer betting platform such as Prophet Exchange. Instead, winners are encouraged.
Peer-to-peer wagering presents bettors with the opportunity to not only bet on sports against other players, but to trade the betting markets. By backing a selection at one price, and then laying the same selection at another price, traders can lock in profit regardless of the outcome of the game that they’re trading.
There aren’t many disadvantages to using betting exchanges, but there are a few. Here they are:
Pro: Lower Costs
When you use online trading platforms you will also discover that there are typically lower transaction fees compared to traditional sportsbooks. In even better news, you may also find that you keep a higher percentage of your winnings thanks to overhead costs linked with running such a platform.
Con: Liquidity problem
One problem with betting exchanges, especially one in its infancy such as Prophet Exchange, is a potential lack of liquidity. The reason for this is that it’s a social betting platform. Therefore, the liquidity depends on how many people are willing to back and lay bets in that market.
Here’s an example:
If you want to place a $10 bet on the Atlanta Falcons to win at the Cincinnati Bengals, but there’s only $4 of lay money down, you won’t be able to get your bet fully matched.
See the following image:
Underneath the odds is the liquidity. In this case, $4. This tells us that, at the current price, we can only place a back bet of $4. If we want to bet more than $4, we’ll have to take a lesser price, such as the +250 to the right, or wait for more people to lay the Atlanta Falcons at +255.
Con: Poor bonuses
For many people, bonuses and free bets are a big draw, and unfortunately, due to the person-to-person nature of betting exchanges, free bets and bonuses are rare. At least, they’re not as common as they are at traditional sportsbooks.
These are of course slight disadvantages, though for some, they may render exchange betting obsolete. Then again, when you look at the upsides of peer-to-peer betting, a lack of bonuses is a relatively small price to pay, especially if you’re betting regularly, as the superior odds and lack of restrictions will prove invaluable.
What is p2p betting?
Peer-to-peer betting is a form of social betting. Instead of betting against a sports betting company that is offering odds, with peer betting, the gambler bets against other players. A peer-to-peer exchange simply acts as the middle man between two bettors.
Is peer 2 peer sports betting legal?
Right now, peer-to-peer sports wagering is legal in the US, though there is only one fully legal betting exchange that caters to the needs of sports bettors. That is Prophet Exchange, which at the moment is only available to residents of New Jersey. Fortunately for those outside of NJ, the exchange has announced plans to expand to other states soon.
What sports can I bet on on a peer-to-peer betting exchange?
If you’re using Prophet Exchange, which is currently the only online p2p exchange in the US, then you can bet on NBA, NCAAB, NCAAF, NFL, Nhl and MLB. The site reports that more sports will be available to bettors soon.
What are matched, unmatched, partially matched bets?
If you’re going to bet on an exchange, you need to know these terms. A matched bet is a bet that is fully placed. If you’ve requested to have $10 on a bet at odds of +100 and those odds are available and there’s at least $10 of lay money down, your bet will be matched.
An unmatched bet is a bet that has been placed unsuccessfully, usually because the price you requested is now unavailable. In this instance you’ll have to wait for such odds to become available again, or cancel your bet and replace it at the new odds.
If your bet is partially matched it means that only a portion of your stake has been accepted at the available odds. This is because there isn’t enough layer’s money at the current odds for your bet to be fully matched.
What does request mean?
When using an exchange, you can request higher odds. This means you can select your chosen odds, input your chosen stake and wait until somebody lays those odds. You can also set it so that if the requested odds have not become available by the time the event starts, your bet will be canceled.