As known from:
The Verge logoUSA Today logoVentureBeat logo
VA
Online Gambling Sites > Betting Guide > Is Peer to Peer Betting Legal in the United States 2025

Is Peer to Peer Betting Legal in the United States 2025: Insights into US Gambling Regulations

Publish Date: 10/05/2024
Fact checked by:

There is little doubt that Peer-to-Peer betting will be taking the United States by storm. The new method or older method of gaming that is coming to mobile in many states in the future is certainly an interesting one. The ability to bet with a small group of people or maybe a larger one but more directly definitely makes things interesting. It truly spices up the sports betting world in a very unique way.

But, are you curious about the legality of peer-to-peer betting in the US? Here is all you need to know about the legal status of peer-to-peer betting in the United States.

Before diving too deep, you need to remember that while sports betting is legal in the United States, it is not in every state. You will need to check your local laws before doing anything in the betting world. This is especially true for P2P sports betting which you will as we continue on.

Understanding Peer-to-Peer Betting

If you are wondering, what is Peer-to-Peer sports betting even? Well, It is a form of betting that involves multiple individuals who can place bets without the need for a sportsbook or any other go-between whether that be in person or online. This is a form of betting that has existed for many years but is becoming more popular as Sports Betting becomes more prominent.

This may sound similar to traditional sports betting but it is much different for one key reason. There is no sportsbook or third-party involved. Or at least in the sense of fees and just putting your bet into a random group.

Certainly, this can be good and bad. Because it is new there are not as many choices for apps and exchanges. But again, the percentage that they take from you is very minimal compared to the big sports betting entities. As always there are tradeoffs but if you want to be able to directly bet with your friends or just people you know either online or offline, then P2P betting apps are the way to go.

Historical Context of Gambling Regulations in the US

Overall gambling has been regulated pretty tightly in the United States. Up until the past few years, you really could only gamble in Nevada and New Jersey. You could play things like slots in some areas but rarely was full gambling allowed, especially with sports.

Then, for sports specifically everything changed in 2018 when the United States Supreme Court declared the Professional and Amateur Sports Protection Act of 1992 unconstitutional. This opened the door for sports gambling which has quickly taken off since. But has led many to ask, is peer to peer betting legal in the United States?

Top sports betting sites for 2025

Bet365
1.
4.6/5
Get $150 in Bonus Bets Win or Lose when you bet $5!
Virginia
Players from Virginia accepted
Virginia (US) Lottery Board
Bet now
Subject to meeting qualifying criteria. Minimum wager $5. Minimum odds -500 or greater. $10 minimum deposit. Paid in Bonus Bets. Bonus Bets wager excluded from returns. New customers only. Available in app only. Max. prize, game restrictions, time limits and T&Cs apply. Deposit required. Bonus Bets wager excluded from returns. T&Cs, time limits and exclusions apply.Gambling Problem? Call 1-800-Gambler 21+
BetMGM
2.
4.6/5
Up To $1500 in Bonus Bets Paid Back if your First Bet Does Not Win
Virginia
Players from Virginia accepted
PayNearMe
Skrill
PayPal
Virginia (US) Lottery Board
Bet now
T&Cs apply, 21+
FanDuel
3.
4.5/5
Bet $5 Get $150 in Bonus Bets If Your Bet Wins!
Virginia
Players from Virginia accepted
Prepaid Card
PayNearMe
PayPal
Virginia (US) Lottery Board
Bet now
T&Cs apply, 21+
Caesars
4.
4.5/5
First bet back as a bonus bet up to $1000
Virginia
Players from Virginia accepted
E-Check
PayNearMe
PayPal
Virginia (US) Lottery Board
Bet now
T&Cs apply, 21+
DraftKings
5.
4.5/5
Bet $5, Get $200 in Bonus Bets Instantly!
Virginia
Players from Virginia accepted
PayPal
VIP Preferred
Play+
Virginia (US) Lottery Board
Bet now
T&Cs apply, 21+

As stated above, most gambling is now legal but it is entirely up to individual states on how they want to go about things. The UIGEA also known as the Unlawful Internet Gambling Enforcement Act of 2006 has been what is keeping Peer-to-Peer sports betting a bit more at bay.

This outlaws financial transactions involving online gambling service providers but not sports gambling online specifically. This has been causing issues for P2P Betting due to how people can send each other money. Because there are no third-parties involved or more accurately, very few, this has kept this type of betting from spreading. Currently, you can only play in New Jersey.

Lastly, remember that different states will allow certain types of gambling. Some only allow for lotteries, others only on tribal land and others allow sports betting but not online. This is why it is imperative you know what the laws of the state you are located in are so that you can know what you are allowed to do and what you are not.

Challenges and Controversies

Because Peer-to-Peer sports betting is supposed to have less interference from outside entities, it makes things much tougher. There is little doubt that this type of betting will become more common but it is currently fighting an uphill battle due to the UIGEA. Regulation is extremely important to make sure that people are not being taken advantage of and losing everything from scammers and other shady dealings. Until this issue is resolved, things will be moving slowly.

This is mainly due to controversies surrounding the use of P2P betting. Some of it is used to get around taxes by using crypto or other means of blockchain. This has caused issues and since it can be between just two people, they could be doing shady dealings through these types of apps almost as if they are just sending money to each other. These are some of the problems that will need answers before P2P betting can become more popular and legally allowed to wider audiences.

Public Perception and Future Outlook

The public perception is generally positive towards Peer-to-Peer betting. Mainly because they like the idea of betting against friends for friendly wagers that may not just be on big sporting events or the big four sports in general. But, they are still weary as the legal issues get worked out.

Once these issues are worked out though, it is hard not to be bullish on the P2P sports betting market. People will like the fact that they are not just betting against random people. They will also like the fact that, at least for now, these exchanges and apps are not taking a higher percentage of their winnings like other ones are.

This will be especially true for sports that may have smaller audiences or experts in them. The big four of baseball, basketball, football and hockey collectively have bigger audiences which is why they are used for so many traditional sports apps. For smaller sports such as rugby or polo or even lacrosse, betting options for these are extremely limited.

Considering these apps and exchanges will make their way into the market place, they will be a bit more niche but will fill the gaps that many traditional sports betting apps don’t. This will be especially true in the future as they may become such a popular way of sports betting that fans of the big four may start to migrate to them.

This is why the future outlook for Peer-to-Peer sports betting is so promising. It is truly more of a when than if it becomes a reality.

Claim the best sportsbook bonuses for February 2025

Bet365
1.
4.6/5
Get $150 in Bonus Bets Win or Lose when you bet $5!
Virginia
Players from Virginia accepted
Requirements (WR): 1x Bonus, Min. Deposit: $10
Go to Bet365
Get bonus now
Subject to meeting qualifying criteria. Minimum wager $5. Minimum odds -500 or greater. $10 minimum deposit. Paid in Bonus Bets. Bonus Bets wager excluded from returns. New customers only. Available in app only. Max. prize, game restrictions, time limits and T&Cs apply. Deposit required. Bonus Bets wager excluded from returns. T&Cs, time limits and exclusions apply.Gambling Problem? Call 1-800-Gambler 21+
BetMGM
2.
4.6/5
Up To $1500 in Bonus Bets Paid Back if your First Bet Does Not Win
Virginia
Players from Virginia accepted
Min. Deposit: $10
Go to BetMGM
Get bonus now
T&Cs apply, 21+
FanDuel
3.
4.5/5
Bet $5 Get $150 in Bonus Bets If Your Bet Wins!
Virginia
Players from Virginia accepted
Requirements (WR): 1x Deposit, Min. Deposit: $10
Go to FanDuel
Get bonus now
T&Cs apply, 21+
Caesars
4.
4.5/5
First bet back as a bonus bet up to $1000
Virginia
Players from Virginia accepted
Requirements (WR): 1x Deposit
Copy
Get bonus now
T&Cs apply, 21+
DraftKings
5.
4.5/5
Bet $5, Get $200 in Bonus Bets Instantly!
Virginia
Players from Virginia accepted
Requirements (WR): 1x Bonus, Min. Deposit: 5
Go to DraftKings
Get bonus now
T&Cs apply, 21+

Conclusion

Now that we have come to the end it is important to remember that yes, technically, Peer-to-Peer betting is legal in the United States. It is the inability to send money directly to each other without the third-parties being involved that is causing the issues. This stems from the UIGEA law put in place in 2006. Once either third-parties are more willing to work with these apps and exchanges or new laws are put it place, it is hard not to get excited about P2P sports betting.

Peer-to-Peer sports betting will likely become a major part of sports betting in general in the future. Just like traditional sports betting, it has to find its way and work within the laws of the United States. Luckily sports betting has taken off and laid the groundwork for P2P betting to find its place.

Read Also
Betting Sites for Canada
There’s good news for sports fans in the Great White North, as ...
Betting Sites for Kuwait
Due to the restrictive laws in the country, the best betting sites ...
Bet365 Promo
New Social Casinos List for February
Welcome to our latest guide on new social casinos. Those looking for ...
New Online Casinos
When looking for new casinos, so much of where you end up ...
New Sweepstakes Casinos
Imagine being able to play free slots and casino table games, but ...
Top Betting Sites
Bet365
4.6/5
BetMGM
4.6/5
FanDuel
4.5/5
Caesars
4.5/5
DraftKings
DraftKings
DraftKings Review
4.5/5
Top Betting Bonuses
Bet365
Bet365 Bonus
Get $150 in Bonus Bets Win or Lose when you bet $5!
T&Cs apply
4.6/5
Subject to meeting qualifying criteria. Minimum wager $5. Minimum odds -500 or greater. $10 minimum deposit. Paid in Bonus Bets. Bonus Bets wager excluded from returns. New customers only. Available in app only. Max. prize, game restrictions, time limits and T&Cs apply. Deposit required. Bonus Bets wager excluded from returns. T&Cs, time limits and exclusions apply.Gambling Problem? Call 1-800-Gambler 21+
BetMGM
BetMGM Bonus
Up To $1500 in Bonus Bets Paid Back if your First Bet Does Not Win
T&Cs apply
4.6/5
FanDuel
FanDuel Bonus
Bet $5 Get $150 in Bonus Bets If Your Bet Wins!
T&Cs apply
4.5/5
Caesars
Caesars Bonus
First bet back as a bonus bet up to $1000
T&Cs apply
4.5/5
DraftKings
DraftKings Bonus
Bet $5, Get $200 in Bonus Bets Instantly!
T&Cs apply
4.5/5

21+ and present in VA. Gambling Problem? Call 1-800-GAMBLER.

This site is using Cloudflare and adheres to the Google Safe Browsing Program. We adapted Google's Privacy Guidelines to keep your data safe at all times.
Virginia Town Hall
Close
Our Sports Pros recommend these awesome sports betting sites this week:
BetMGM
BetMGM Bonus
Up To $1500 in Bonus Bets Paid Back if your First Bet Does Not Win
T&Cs apply, 21+
Promo Code:
Go to BetMGM
Get Bonus
FanDuel
FanDuel Bonus
Bet $5 Get $150 in Bonus Bets If Your Bet Wins!
T&Cs apply, 21+
Promo Code:
Go to FanDuel
Get Bonus
Bet365
Bet365 Bonus
Get $150 in Bonus Bets Win or Lose when you bet $5!
T&Cs apply, 21+
Subject to meeting qualifying criteria. Minimum wager $5. Minimum odds -500 or greater. $10 minimum deposit. Paid in Bonus Bets. Bonus Bets wager excluded from returns. New customers only. Available in app only. Max. prize, game restrictions, time limits and T&Cs apply. Deposit required. Bonus Bets wager excluded from returns. T&Cs, time limits and exclusions apply.Gambling Problem? Call 1-800-Gambler 21+
Promo Code:
Go to Bet365
Go to Bet365
×
Your Promo Code:
The bonus offer of was already opened in an additional window. If not, you can open it also by clicking the following link:
Visit Site