P2P Gambling Goes GlobalEvery time I turn around, there is something new in the gambling industry. It seems like only yesterday, gambling in the U.S. was banned in all but two states – now it’s a $60 billion a year industry with tendrils stretching around the world, into cyberspace and even onto the TV screen. Casino gambling, sportsbetting, bingo, horseracing - people just can’t seem to get enough of the stuff. What’s next up for the gambling industry? Person-to-person (P2P) wagering.
Have you ever wanted to be to bookie? Or maybe you wish there was a way to bet without paying the high vigorish? With person-to-person wagering you can do both. In this issue of Gambling Online, we examine this growing segment of online gambling and take a look at one of the industry leaders behind this new era of sportsbetting, TradingSports.com.
What is P2P Betting?
Person-to-person betting is a growing Internet-based service industry that allows gamblers to bet against each other on various sporting events. Betting takes places through any online medium (including mobile devices and interactive digital television) at participating companies called P2P betting exchanges.
Operating similarly to a stock exchange, P2P bettors can either back or lay a bet on a sporting event and have the option to either accept a price already there or set their own price for other bettors to match. In essence, P2P allows the customer to play the role of either the bettor or bookmaker while charging only a small percent of the amount wagered or cashed in, typically a significantly lower amount than the vigorish a bettor would normally pay with a traditional bookmaker.
P2P betting is an innovative extension of Internet gambling that has recently taken a giant leap forward with TradingSports.com’s development of the world's first global business-to-business sports betting exchange. This concept, which promises to expand the existing P2P market, is designed to facilitate person-to-person wagering through a centralized system, and provide more flexibility and control for gamblers.
Essentially a technology infrastructure housed “beneath” the sportsbetting industry, TradingSports is a massively scaleable platform that allows gamblers from gambling company "A" to transact bets against the customers of gambling company "B" without bettors ever knowing with whom they are betting against or from where. The punter never seems to leave their host site, and never knows the identity of their counterpart in any matched bets.
Like the hub of a wheel, this large scale centralized exchange acts to unify the P2P betting industry by allowing gamblers from all over the world to bet against one another through local betting companies who are members of the exchange. The exchange builds links with gambling sites around the world, creating a vast central pool of active P2P gamblers.
In addition to this centralization, companies that join the exchange benefit from a variety of other factors including no risk, in-run betting, easy adaptation to multiple forms of betting, low start-up and transaction costs, increased per-client revenue, a simplified user interface and proposition, and support for all interactive mediums, including Web, Interactive Digital Television and Mobile devices. The system also offers punters the ability to place and/or reverse risk positions at any time during a live event.