Peer-to-Peer Gambling: Will P2P Betting Dominate in 2025?

Peer-to-Peer gambling, also known as P2P, is changing the way people bet, and if you get it right, you can unlock huge potential. Today, we look at what P2P gambling is, how it differs from traditional gambling, what the legal situation is, what opportunities it offers, what challenges you may face as an operator, and how affiliates can benefit from this booming industry with affiliate marketing.

What Is Peer-to-Peer Gambling?

In peer-to-peer gambling players compete against each other as there are no centralized bookmakers to place bets with.

People bypass traditional betting institutions which take bets by conducting challenges directly among themselves.

Digital poker matches players against their fellow participants instead of setting them against the house operator. The betting system known as peer-to-peer includes sports wagering together with table games and multiple betting opportunities in which participants create their own betting odds.

n recent years, the gambling industry has seen massive growth—thanks in part to the rise of P2P betting platforms. Players have complete control over their betting experience through peer-to-peer gambling by setting their own betting terms which enables them to strategize against other competitors. The system enables players to function as both bettors and bookmakers which grants them complete authority over their gaming activities.

Cutting out the middleman makes the whole experience more engaging and interactive.

How Does Peer-to-Peer Gambling Work?

Think of P2P gambling like a marketplace.

Instead of buying and selling items, users buy and sell odds and stakes. One player sets the terms of the bet, and another player agrees to those terms—then it’s game on. Platforms for P2P betting act more as mediators, making sure the bet is fair, secure, and compliant with local regulations. They usually take a small commission for offering these services, which is how they make their money.

• Example: John thinks that Team A will win the football match, and offers odds of 2/1. Jane thinks Team B has the edge, so she takes John’s bet. The platform simply oversees the exchange.

Unlike traditional gambling, P2P gambling introduces flexibility to the betting world. Bets can be highly customized. Players decide the amount, the odds, and the rules. In this format, there’s room for creative, personalized wagers that can be as wild or as conventional as the participants want them to be.

P2P vs Traditional Gambling: What’s the Difference?

The biggest difference is who you’re betting against:

In conventional gambling, the house always has the upper hand, ensuring a long-term statistical advantage. This has led many gamblers to move to P2P platforms, seeking a fairer environment where their own skills influence the outcome instead of facing the casino’s inherent edge.

Key benefits of P2P gambling include transparency, fairness, and equal opportunity, setting it apart from traditional gambling settings.

Why Is Peer-to-Peer Betting Gaining Popularity?

P2P gambling has seen explosive growth recently, and there’s good reason for that. Let’s break it down:

• More Control: Players get more say in the odds they take or set, giving them a higher sense of control over the game.
• Lower Costs: No middleman is taking a hefty cut, and no house ensuring its own advantage.
• Community Feeling: It’s a social experience. You’re betting against friends, family, or strangers with similar interests, creating a sense of community.
• Regulatory Simplicity: Since the platform isn’t actually a bookmaker, in some jurisdictions, the regulatory burden is lighter.
• Fair Play: Since it’s all player vs player, many people feel that they have a fairer chance at winning. They aren’t up against a massive corporation with millions invested in algorithms designed to beat them.

In addition to these reasons, P2P gambling is becoming especially popular among millennials and Gen Z. These generations value authenticity, control, and social experiences. P2P platforms fit right into their lifestyle—interactive, community-driven, and less focused on corporate profits.

Is Peer-to-Peer Gambling Legal?

Region	Legal Status	Details
United States	Varies by State	Complex and evolving
Europe	Mostly Legal 🇪🇺	Heavily regulated
Asia	Mixed	Depends on game type

The legal status of P2P gambling can impact whether it’s a viable option for players and operators in different regions.

The legality of peer-to-peer gambling depends on the geographic location where you currently reside. The law allows P2P gambling in locations that accept regular online gambling activities, although specific rules may apply because of its distinctive characteristics.

The legal status of P2P gambling in the United States exists between clear definitions (Download this PDF file to learn about the legal status in each and every state in the US) . Some states allow online gambling, while others have strict bans. The rules that control P2P gambling differ between each state. Some states allow P2P gambling without restrictions, while others ban it completely.

The operation of P2P gambling platforms in the United States requires a deep understanding of how different states regulate gambling activities.

The United Kingdom stands alongside numerous European nations that establish P2P gambling regulations and allow its operation. The UK Gambling Commission needs to license all P2P gambling platforms operating within its borders.

Malta represents an ideal location for P2P platform establishment because it demonstrates supportive policies toward online gaming activities.

Far East: The P2P gambling status in India falls into a contradictory category among other Asian nations. P2P gambling platforms can operate in some cases based on the assessment of games being skill-based or based on chance. The Chinese government prohibits gambling yet its citizens participate in P2P gambling operations that operate illegally in underground networks.

The United States maintains different gambling laws among states while Europe has most jurisdictions allowing P2P activities under tight regulatory frameworks and Asian nations have inconsistent regulations depending on game types.

Businesses must understand regional laws and comply with them because platform operators need to follow these regulations. The regulatory framework is complex and varies even within the same country.

Licensing Requirements

The majority of P2P platforms, similar to conventional casinos, need valid licenses to operate legally. The licenses mandate platforms to follow rules that protect players through provisions for fair play, payouts, and responsible gambling practices.

Licensing serves a dual purpose: It fulfills regulatory requirements and creates essential trust between platforms and their users.

Most users steer clear of unlicensed gambling sites because trust is everything in the gaming industry.

To obtain gambling licenses, platforms must implement systems that verify players, fight money laundering, and prove fair play. These processes become complex and require substantial investments.

After obtaining its license, a licensed platform develops maximum appeal to potential users.

Peer-to-Peer Gambling vs Betting Exchanges

Now, if you’re already deep into the online betting industry, you might be wondering:

How is P2P gambling different from betting exchanges?

Great question.

Let’s break it down!

Aspect	Peer-to-Peer Gambling	Betting Exchanges
Definition	Direct betting between individuals without intermediaries.	A platform where users can bet against each other, with the exchange acting as a middleman.
Intermediary Involvement	No intermediary – direct transactions between players.	The exchange acts as a facilitator, taking a commission on winnings.
Commission Fees	Typically no fees unless using a third-party platform for transaction.	Exchanges charge a commission (usually 2-5%) on winning bets.
Control over Odds	Players negotiate odds directly.	Players can offer their own odds or accept odds offered by others.
Risk Management	Risk depends entirely on the opponent’s reliability.	Platform manages financial risks, ensuring both parties have funds available.
Market Liquidity	Limited liquidity, depending on available players.	High liquidity, as exchanges typically attract a large number of users.
Betting Types	More informal, less variety in betting types.	Offers a wide range of betting options (e.g., lay betting, back betting).
Regulation	May operate outside traditional gambling regulations.	Highly regulated, ensuring fairness and protection for users.
Trust and Transparency	Depends on trust between individuals.	Backed by the platform’s reputation and user protection policies.
Flexibility	Flexible, but limited to players’ mutual agreements.	High flexibility with options to set or accept odds in a competitive market.
Popular Platforms	Private or informal setups, or apps designed for peer betting.	Betfair, Smarkets, Matchbook.

• Betting Exchange: This is more of a marketplace for punters to buy and sell odds. The platform still takes a cut, usually around 5%, and also sets limits on what and how you can bet. Betting exchanges also tend to have more sophisticated users, which means the average user may find it challenging to compete against highly experienced bettors.
• P2P Gambling: It’s more informal and less regulated, often utilizing smaller platforms with varied structures. You establish the rules, while the platform simply facilitates. The complexity is generally lower, which makes it more attractive to average bettors. Additionally, P2P platforms tend to have a more personal touch since you’re often betting against other individuals instead of an anonymous market.

P2P gambling provides users with greater freedom to set terms compared to betting exchanges, which act as intermediaries and can restrict betting actions. This personalized experience allows for negotiation of terms, making P2P a unique option for social betting enthusiasts.

Challenges of Peer-to-Peer Gambling

Of course, it’s not all smooth sailing.

There are some challenges in P2P gambling that business owners should know:

• Liquidity Issues: In a traditional casino, there’s always someone ready to take your bet. In P2P, you need someone willing to match your specific terms. Without enough active users, this can become a major issue. To overcome liquidity issues, platforms need a critical mass of active users. Until that is achieved, user experience may suffer.
• Regulatory Ambiguity: As mentioned, the laws aren’t always clear, and navigating the regulatory environment can be difficult. It’s important to stay up-to-date with local and international regulations, which can evolve and impact your operations.
• Trust: This is essential for players, as they need to rely on both the platform and each other. Disputes should be resolved fairly, which depends on having strong systems and transparency in place. Using escrow services, which hold funds until a bet is complete, can help establish this trust. However, setting up these services adds extra costs and complexity.
• User Acquisition: Unlike traditional online casinos that benefit from people looking for games 24/7, P2P platforms need to convince users to bet against each other. Therefore, marketing and community-building are critical.

The Role of Affiliate Marketing in P2P Gambling

Affiliate marketing is a cornerstone in the online gambling industry, and peer-to-peer gambling is no exception. Affiliates help platforms acquire new users, and this can be a key growth driver for a P2P betting business.

Affiliate marketing is the ideal model to promote P2P gambling because affiliates have niche audiences that trust their recommendations. This makes affiliate marketing a powerful channel for platforms looking to expand their user base while managing customer acquisition costs.

Here’s how affiliate marketing works in P2P gambling:

1. Affiliates Sign Up: They join an affiliate program provided by a P2P platform.
2. Promote the Platform: Affiliates promote the platform using blogs, social media, email campaigns, or even forums. They often add value by creating content that helps educate players on how to maximize their experience.
3. Earn Commissions: Affiliates earn money based on signups, deposits, or betting activity made by users who came through their referral link.

Why Choose Affiliate Marketing for Your P2P Platform?

• Cost Efficiency: You only pay for results—either clicks, deposits, or other actions. This makes it a highly cost-effective way to grow a platform.
• Massive Reach: Affiliates have the networks and niche audiences already engaged and ready.
• SEO Impact: Affiliate content can also help improve SEO for your platform, driving organic traffic through content-rich backlinks.

One big advantage for affiliates in the P2P gambling space is the recurring commissions. Unlike other products that only pay out once, gambling platforms often offer lifetime commissions, meaning affiliates can keep earning as long as their referrals keep betting. This creates a strong incentive for affiliates to push P2P platforms aggressively.

Meet Scaleo: The Ultimate Affiliate Marketing Platform Designed for Gambling

One of the best tools out there for setting up an affiliate program for your P2P gambling platform is Scaleo.

• User-Friendly Interface: With an intuitive, easy-to-use dashboard, Scaleo makes managing affiliate campaigns a breeze. You don’t need to be an expert in affiliate marketing to get started.
• Advanced Analytics: Full analytics suite, so you can understand what’s driving your growth and where you need to improve. Scaleo gives you actionable insights that can be used to optimize campaigns in real-time.
• Customization: Tailor campaigns to your specific needs, and create targeted campaigns to convert the exact kind of users you’re looking for. This level of customization is critical for niche audiences.
• Fraud Prevention: Gambling platforms are often a target for fraudulent activities. Scaleo provides robust tools for fraud detection and prevention, making sure you only pay for genuine leads.

Scaleo makes it easier than ever to create, manage, and grow affiliate marketing for P2P platforms—which means a lot more signups and a healthy boost to your bottom line. If you want a tool that’s built for serious growth, you can’t afford to overlook Scaleo.

Conclusion: Is Peer-to-Peer Gambling Worth the Investment?

Peer-to-Peer gambling gives players more control, better odds, and a social experience that traditional gambling lacks.. It comes with its own set of challenges—such as liquidity issues and complex legal frameworks — but for the right entrepreneur, it’s an industry worth exploring.
P2P gambling lies at the intersection of social interaction, financial strategy and gaming fun. For players, it offers greater transparency and a level playing field, and for entrepreneurs, it is an opportunity to tap into a less crowded segment of the gambling industry.

Building trust, sufficient liquidity and regulatory compliance are the biggest hurdles—but with the right approach, they are all achievable.

And if you’re ready to dive into affiliate marketing to bring a steady stream of players to your platform, Scaleo can help you reach your goals with ease.

👉 Ready to Get Started?

If you’re interested in bringing affiliate marketing to your P2P gambling app and reaping the benefits of an endless stream of clients, give Scaleo a try. With powerful tools to streamline your affiliate program, you’ll be ahead of the competition from day one. Click below to learn more and get started today!

Last Updated on March 27, 2025