Betting Markets
Peer-to-Peer Betting
How peer-to-peer betting exchanges work, how they make money, and what to know before using one.
By Jared Narz · · 2 min read
In peer-to-peer (P2P) betting, you bet against other users instead of against the house. The platform matches buyers and sellers and earns money through fees or commissions rather than by taking the other side of your bet.
How it works
- You can take a price someone else is offering, and your bet is matched instantly.
- Or you can post your own price (for example, "I'll take Player A at +150") and wait for another user to match it.
- Unmatched offers can usually be cancelled.
How the platform gets paid
Instead of building a margin into the odds, P2P platforms typically charge a commission or fee.
Illustrative: a hypothetical 2% commission on a $150 net win would cost $3. Actual fee structures vary by platform, so check each one's terms.
Why bettors use P2P platforms
- Prices can be closer to fair, because there's no built-in vig on both sides.
- You can set your own price instead of accepting the book's.
- Exchanges generally don't need to limit winners the way some sportsbooks do, since the platform isn't on the other side.
What to watch for
- Liquidity: popular games usually have plenty of activity, but niche markets may not have anyone to match your bet.
- Fees: include them when comparing prices.
- Availability: P2P platforms and prediction markets aren't available everywhere. Check eligibility where you live.
Platforms like Novig and Polymarket appear in our Betting Toolkit. Compare them to traditional books when you line shop.
Examples are illustrative and use hypothetical numbers. This article is educational content, not financial advice or a guarantee of results. 21+. Bet responsibly.