In the last two years, the online betting industry has seen unprecedented growth. As of March 2019, BettingExchange.com reports that there are over a million registered users on its platform, and the site itself is valued at over $100 million. The company also operates four other platforms, including DraftKings.com, which it purchased in 2018 for a whopping $400 million. With the growth of mobile and online betting comes the rise of P2P (person-to-person) betting exchanges, such as BettingExchange.com, which allow users to place bets with other individuals, instead of being restricted to betting with people located on a remote server.
With the rise of P2P betting exchanges come some unique opportunities, as well as some serious challenges.
Unique Opportunities
One major reason why P2P betting exchanges have gained such popularity is because of their unique ability to allow casual gamblers and high rollers to interact with each other, which was previously limited to larger bookmakers. According to Business Insider, P2P exchanges allow users to take part in more than one bet per day, per user, with no maximum limits.
This level of interactivity provides a certain excitement, as well as an element of risk, which could be exciting for certain types of gamblers. Additionally, some platforms, such as BettingExchange.com, have developed tools, such as social media contests, which allow users to engage with new audiences, as well as existing ones.
Risks & Challenges
Of course, with any new mode of payment and interaction comes the risk of fraud. Luckily, P2P betting exchanges have implemented security measures, such as two-factor authentication, so that users can be certain of the genuineness of each other’s identities. But, there is still the chance of a hacker gaining access to an account and making fraudulent transactions.
Additionally, some platforms require users to open an account before they can engage in any P2P betting activities, which might deter casual users, or potential new users, from using the platform. But, if you do decide to give it a try, hopefully, you will be joining a community of people who are welcoming and trustworthy.
The Future of P2P Betting
Despite the many benefits that P2P betting exchanges offer, it is fair to say that the industry is still in its infancy. As it stands, P2P betting is still a smaller sub-sector of the online betting industry, and, as such, doesn’t occupy a huge chunk of the overall market share. According to a June 2019 report from the NPD group, physical sportsbooks and P2P betting platforms make up just 10% of the UK online betting market.
Despite this, it is clear that P2P betting, and the larger, more established bookmakers, such as Paddy Power and Betfred, are constantly looking to each other for new opportunities, and partnerships, to grow their business and remain relevant in an ever-changing world.