The global online betting industry is no stranger to innovation, but the latest evolution could mark a fundamental shift in how people engage with gambling. The online betting market was worth $93.26 billion in 2024, and is estimated to grow to $153.21 billion by 2029. A new generation of players, driven by a thirst for fairness, transparency and decentralised technology, is embracing a model that puts them directly in control: peer-to-peer crypto betting. As blockchain technology matures, so does the opportunity to up-end the dominance of traditional sports books and casinos. Much of this momentum has come from mobile gaming and the expansion of legal frameworks. But within this broad market, a more disruptive force is quietly taking shape. Crypto casinos have already shown what’s possible and, whilst illegal in some countries, their revenues have grown fivefold in the last few years to now be turning over $80billionp.a. But even these platforms rely on the traditional ‘house’ model: the operator sets the odds and takes the bets. Peer-to-peer betting, by contrast, eliminates the house altogether. Instead, players bet against one another, with smart contracts executing the outcome. No middlemen, no manipulation - just clean, direct wagering. This form of decentralised betting holds obvious appeal. Blockchain’s transparency ensures that all wagers and outcomes are verifiable, immutable and secure. Players Funds are held in non-custodial wallets and pay-outs are automatic. For users familiar with Web3, this represents a significant philosophical and functional upgrade. Of course, there are hurdles. Legal clarity is still lacking in many jurisdictions, particularly when it comes to automated smart contract betting. Moreover, onboarding remains an issue. Whilst connecting a crypto wallet is second nature to some, for many would-be users it remains an intimidating first step. And liquidity, a critical component of successful markets, must be built through user incentives and seamless user experience.
Source: X
The Australian company, Stake.com, stands out as a major success story. Launched in 2017, it has, according to the FT, become: “the seventh largest gambling group globally.” Stake.com has rapidly grown into one of the largest crypto casinos in the world, reportedly processing over a billion dollars in crypto wagers every month. Its aggressive marketing strategy, including sponsorship deals with major athletes and influencers, has helped it become a household name in the Web3 betting world. Stake’s rise demonstrates the massive appetite for transparent, fast and crypto-native gaming experiences. The traditional global betting market is experiencing a steady compound annual growth rate (CAGR) of around 11%, fuelled by mobile access, expanding regulations and wider acceptance of online wagering. However, crypto betting - still a relatively new player in the space - is growing at a much faster pace, with estimated CAGRs ranging from 20% to 30%. Whilst the base is currently smaller, the growth rate signals a disruptive shift, particularly among younger, tech-savvy audiences who demand transparency, privacy and control.
But despite these challenges, the future is taking shape. Social betting, integrated with platforms such as Telegram or Discord, is on the rise. Wagering is becoming more community-driven - and more personal. This isn't just a product evolution; it's a cultural one. Betting is transforming from a solitary activity into a participatory, social experience. The rise of peer to peer platforms similar to it marks a broader shift in how we think about risk, reward and trust. It's not just that the odds are fairer - it's that the entire system is open to scrutiny. In a world increasingly sceptical of opaque institutions, that’s a compelling offer. As regulators catch up, as interfaces improve and as communities grow, it’s hard not to imagine a world where peer-to-peer betting becomes the new standard. After all, the house doesn’t always have to win. But the idea of peer-to-peer betting isn’t new. Back in 2000, Betfair revolutionised the market by introducing a betting exchange - allowing users to bet against each other rather than the bookmaker. However, Betfair's exchange remains a centralised platform, subject to gatekeeping, fees and restrictions set by the operator - although we are seeing innovative alternative Peer to Peer platforms emerging such as Kutt blending peer-to-peer iGaming with a social-first platform. Instead of relying on the house to set odds and limit choices, Kutt empowers users to create their own bets, so offering fairer, market-driven outcomes. This freedom extends far beyond sports, allowing people to wager on virtually anything they can imagine. Thanks to Kutt’s innovative regulatory approach, Kutt operates legally in 40 US states, including major markets such as Texas and California where conventional sportsbooks remain banned. But it’s not just legality or flexibility that fuels Kutt’s growth - it’s the platform’s social DNA. Features such as user profiles and group chats transform betting from a solitary transaction into a connected, interactive experience. As more users join, Kutt benefits from powerful network effects, turning every wager into a shared moment within a growing community. Alternatively, Polymarket is a blockchain-powered decentralised prediction platform allowing users to speculate on the outcomes of real-world events (from politics and economics to entertainment) by buying and selling shares tied to specific outcomes. It’s not betting in the traditional sense, but more akin to trading information and opinions in a market format. Polymarket relies on liquidity pools and market dynamics determine pricing, rather than direct wagers between individuals.
Selection of outcomes offered to bet on by Polymarket
Source: Polymarket
Peer-to-peer social wagering also offers a powerful alternative for addressing gambling addiction and problem gambling. By shifting the model from fast-paced, house-driven betting to community-based, social interactions, it introduces natural friction and accountability. Bets are made with or against peers, not anonymous algorithms, so encouraging conversation, moderation and even peer intervention. Unlike traditional casinos designed to maximise volume and isolation, social wagering platforms can build-in support tools, transparency and spending limits - fostering a healthier, more mindful betting culture. The future of betting isn’t about faster apps or flashier casinos - it’s about who controls the game. Peer-to-peer crypto iGaming is quietly dismantling the foundations of traditional gambling by removing the most entrenched player at the table: the house. Powered by blockchain technology, smart contracts and decentralised platforms, this new model hands control back to individuals, allowing them to set their own odds, wager on anything imaginable and engage directly with each other whereby ushering-in greater transparency and trust.
In a world increasingly sceptical of opaque institutions, the appeal of verifiable, decentralised wagering is obvious. But beyond innovation, this shift could redefine responsible gambling itself, replacing isolation and addiction-fuelling environments with transparency, social accountability and built-in safeguards. The real question isn’t whether this model will challenge the status quo - it’s whether traditional betting platforms can survive in a future where the house no longer holds the power. As one Wag put it: who needs a bookie when you have Larry from Liverpool offering 5 to 1 that Darwin Nunez will get a hattrick next season? And given Nunez’s form, that’s a bet this writer would happily take….
This article first appeared in Digital Bytes (29th of April, 2025), a weekly newsletter by Jonny Fry of Team Blockchain.