In the past, large sportsbooks and private companies were the ones who made bets and enabled individuals to engage in gambling activities, whether that was in-person or online.
However, today the climate is shifting. Peer-to-peer betting platforms are now taking the world by storm. With nearly 50 million Americans already placing bets on sport, the stakes are high when it comes to peer-to-peer betting.
If you’re ready to learn more about peer betting, keep reading. Let’s take a look at whether or not you should use a peer-to-peer betting platform.
What Is a Peer-to-Peer Betting Platform?
Before we start talking about whether or not it’s a good idea to use a peer-to-peer betting platform, let’s take a look at what these platforms are. P2P betting, in its simplest form, takes place between two individuals.
For example, let’s say that you and your friend make a $50 bet as to whether the LA Rams will beat the Cinncinatti Bengals in the Superbowl. In this situation, two peers are placing a bet, meaning that you have just made a peer-to-peer bet!
Now, just like how you can make a bet privately between you and your friend, peer-to-peer betting platforms allow you to make bets with other peers. These platforms do away with the need for a traditional sportsbook and make it easier than ever for you to cast your best.
Back Bets and Lay Bets
When it comes to peer-to-peer betting, you’ll need to be aware of a few types of bets. These bets are known as lay bets and back bets.
To get an idea of how these bets work, let’s take a look at an example. Let’s say that the Dolphins are playing against the Chargers. You believe that the Chargers will win the game.
What you can do is place a back bet that the Chargers will win. You can think of this as though you’re backing the Chargers, and is the same type of bet you’d make if you were placing it on a regular sportsbook. If the Chargers win their game, you’ll make a profit.
Now, let’s say that another user on the betting exchange believes that the Chargers will lose. They place a lay bet on the Chargers, which means they’re betting against that team. They’ll win their bet if the Chargers either draw or lose the game.
What you should be aware of is that in exchanges, there’s a certain level of liquidity. For instance, if you bet $100 on the Chargers at even money, you’ll need another customer to bet the opposite. When someone does, your bet will be matched and you’ll be able to participate in placing your gamble.
Is Peer to Peer Betting Legal in the US?
Once people find out what peer-to-peer gambling is, they can’t wait to get started. However, they also often feel stressed that perhaps they won’t be following US law.
The good news is that at the moment, there aren’t a lot of legalities surrounding P2P betting in the United States. That means that you can legally place bets on P2P betting websites!
However, the trouble is that peer-to-peer betting isn’t always possible between states. That means that while you might be able to find a match on your chosen betting platform, it might not work if the person is in a different state.
For example, if you live in Delaware you can only wager with people who live in Delaware. This creates a liquidity problem for the site and can make it more difficult for you to find matches for your bets.
What’s more, traditional sportsbooks aren’t fans of peer-to-peer betting. They feel that these platforms will rob them of their customers and cause them to lose out on big profits. Since traditional sportsbooks are so influential, they often manage to sway state governments regarding P2P legislation.
Despite all this, however, peer-to-peer sports betting is certainly not on the decline. In fact, it’s on the rise, with new betting exchanges opening around the world on an almost daily basis!
Advantages of Peer to Peer Betting Exchanges
If you’re interested in peer-to-peer betting you’ll be thrilled to discover that there are some pretty great advantages of doing so. Let’s take a look at some of the advantages of this type of betting.
- Low Margins
One of the problems with traditional sportsbook betting is that you know the operator is trying to make a profit. That’s because he or she is running a business.
What that means is that the market offers have a margin. In some markets, the margins can be huge, reaching as much as 10%!
The reason why sportsbooks set these margins is so that they can earn a profit on bets and attract equal bets on all the game’s outcomes.
However, when you participate in peer-to-peer settings, the margins are much lower. That means that you’re getting true odds, which also means you’ll earn higher payouts on your bets.
- No Restrictions
Did you know that sometimes, sportsbooks will limit their bettors’ accounts if they begin winning too much money? Not only is this unfair, but it can leave bettors worrying if they hit a winning streak.
On peer-to-peer bookie exchanges, however, this issue doesn’t happen. You’re allowed to place as many bets (and win as many bets) as you like without any restrictions to your account.
- Trading Opportunities
If you’re an experienced bettor, you can use peer-to-peer exchanges to conduct trades. What that means is that you can lay a bet on an outcome that you’ve already backed so that you guarantee a profit for yourself.
Disadvantages of Peer-to-Peer Bookie Platforms
In determining whether or not you should use peer-to-peer bookie platforms, it’s important to look at some of the disadvantages of these sites as well. That way you can make an informed decision about using these sites.
- Lack of Liquidity
One of the biggest problems with peer-to-peer bookie platforms is that the markets don’t have great liquidity. If there isn’t a lot of liquidity in the market, you won’t be able to match your bets. In other words, if there aren’t enough customers on both sides of the bet, you won’t be able to bet at all.
- Lack of Bonuses
There are tons of benefits to using traditional sportsbooks, including matched deposits or free bets. On peer-to-peer bookie platforms, these bonuses are much harder to come by, making them less advantageous for the better.
- Confusing to Enter
Another issue that bookie platforms often run into is that using their platform can be confusing for beginners. People who are just getting started on a betting exchange may not fully understand the platform, causing fewer people to join.
Types of Peer-to-Peer Sportsbook Softwares
It’s important to note that there are a few different types of P2P betting exchanges. Not all of them are the same, and it’s important to differentiate these types of platforms so that you can make the most use out of them.
- Daily Fantasy Sports
One of the first types of peer-to-peer betting platforms out there is something called daily fantasy sports, or DFS. In these platforms, customers create custom leagues and bets or enter contests to challenge others in fantasy sports.
What they’ll do is work with their team to gather the most points in the contest. If they end up with the majority of points, they’ll earn a monetary payout.
- Betting Exchanges
One of the most common types of peer-to-peer betting platforms is a betting exchange. Betting exchanges work much the same way as regular sportsbooks.
On these sites, customers can bet against each other on major sports. That means that customers can bet on hockey, basketball, football, and other major league sporting events.
Betting exchanges also offer esports betting. On these platforms, bettors can place wagers on video games and video game tournaments rather than on traditional sports.
- Blockchain-Based Exchanges
Cryptocurrencies have seen a huge surge in popularity lately, and one use for crypto is in blockchain-based exchanges. These exchanges are hybrid sportsbooks that base their enterprise on blockchain technology.
These types of platforms contain a digital token that bettors can vie for. However, the platforms also accept traditional currencies, allowing individuals to earn either their home currency or their digital currency.
Either way, customers place bets on eSports or on sporting events. They can either place bets against the marketplace for its digital currency or can place bets against other peers.
Join a Bookie Platform Today
So, is a peer-to-peer betting platform worth it? We think yes. Peer-to-peer betting systems have tons of opportunities for members to win big, no matter what type of betting exchange you’re using.
If you’re ready to join the world of peer-to-peer betting, we’re here for you. Sign up for Ace Per Head and join a network of some of the oldest betting systems out there.