A peer-to peer betting app lets you bet against other users instead of a sportsbook. The app charges a fee or commission rather than building a margin into the odds. In the US as of October 2026, the main options are ProphetX, Novig, Sporttrade, BettorEdge and BetOpenly, with fees from zero to about 2% of net winnings and state access that depends on each app’s regulatory route.
What Is a Peer-to Peer Betting App and How Does It Work?
A peer-to peer betting app matches your bet against another user’s opposite position, and the app earns a commission or fee instead of setting odds with a built-in margin.
The core of the product is the order book. Each market, such as a moneyline, a spread or a player prop, holds a list of open orders at different prices. Makers post the prices they are willing to trade at and wait for someone to accept. Takers accept a price that is already on the book, and their order fills right away. If you post an order no one wants at that price, it sits until the market moves to you or you cancel it.
Prices can beat a sportsbook’s line because no single party is pricing both sides with a hold baked in. A book quoting -110 on both sides of a spread is charging you through the price. On an exchange, makers compete with each other, which narrows the gap between the best bid and the best offer. The platform’s fee is the cost of the trade, and you can see it.
The weakness is liquidity. A popular NFL side will usually have depth at several prices. A niche prop or a lower-tier league may have one or two makers, or none. Your order can then fill only in part, fill at a worse price than you wanted, or stay unmatched.
In the house model, the sportsbook takes the other side of every bet, carries the risk, sets limits and earns the vig. In the exchange model, the platform acts as the venue and earns from activity, not from your loss. If you need a refresher on the vocabulary, see our odds, vig and event contract terminology explainer.
Which Peer-to Peer Betting Apps Operate in the US in 2026?
ProphetX, Novig, Sporttrade, BettorEdge and BetOpenly are the main US options, and Underdog runs a peer-to-peer format in California.
- ProphetX. In June 2026 the CFTC cleared ProphetX and Novig to operate a federally regulated sports exchange. ProphetX went live nationwide that same month. Its standout feature is a proprietary Request for Quote (RFQ) parlay tool, which lets you build multi-event combinations and have counterparties price them.
- Novig. Novig followed with its own nationwide launch on August 4, 2026. Its affiliated Ludlow Exchange received CFTC approval as a Designated Contract Market in June 2026. Covers’ October 2026 rankings name Novig “best for low-friction trading.”
- Sporttrade. A peer-to-peer exchange with a narrower footprint, available in four states.
- BettorEdge. BettorEdge describes itself as a peer-to-peer sports betting marketplace and says it has more than 35,000 bettors across 45+ states. Those figures are the company’s own claim.
- BetOpenly. A peer-to-peer app that takes its cut from the winning side’s profit.
- Underdog. In California, where sports betting is not legal, Underdog converted to a peer-to-peer format.
Newer entrants are still raising money. Slips announced a $3.5M seed round in January 2026 to build peer-to-peer betting.
One correction matters if you are reading older guides. Both ProphetX and Novig have left their sweepstakes models. Novig no longer runs Novig Coins or Novig Cash; since its CFTC approval it operates as a regulated real-money exchange. Any guide that still describes Novig Coins offers or a sweepstakes structure is out of date.
How Much Do Peer-to Peer Betting Apps Charge in Fees?
Fees run from zero to about 2% of net winnings, depending on the app and on whether the trade is pregame or live.
| App | Fee model | Notes |
|---|---|---|
| ProphetX | 2% commission on net winnings from straight trades | RFQ tool for parlays |
| Novig | No fee on pregame trades; takers pay on live trades only | Makers trade live without a fee |
| BetOpenly | About 1% of the winner’s profit | Losing side pays no fee |
| BettorEdge | Free tier with up to $100 in no-fee orders a month; Premium at $19.99 a month | Subscription model |
Two things stand out. Every model charges winners or takers, not losers, which is the reverse of how vig works. And the structures reward different habits. Novig suits a pregame trader and anyone willing to post prices live. BettorEdge’s subscription only pays off if your monthly volume clears the free tier by enough to justify $19.99. ProphetX’s flat commission is easy to model across a season.
The headline fee is not the whole cost, though. What you pay is the fee plus the price you get filled at. A zero-fee market with one maker quoting a wide price can cost you more than a 2% commission on a deep market where makers are competing. If your order has to walk down the book to fill, or sits unmatched while the line moves, the fee saving disappears. Check the depth on the markets you actually trade before you pick an app on fees alone.
Promotions are a smaller factor. Sporttrade offers a sign-up bonus of up to $100, which is worth taking if you are in one of its states, but it should not outweigh liquidity and fees over months of trading.
Is Peer-to Peer Betting Legal in Your State?
Legality depends on the app’s regulatory route. CFTC-regulated exchanges reach almost every state, while state-licensed apps work only where sports betting is legal.
Federally regulated exchanges list sports outcomes as event contracts under the oversight of the Commodity Futures Trading Commission, which is why their footprint is so much wider than a typical sportsbook’s. Coverage as of October 2026:
- ProphetX: 49 states, all except Nevada. Minimum age 18.
- Novig: 47 states, excluding Arizona, Michigan and Nevada. Minimum age 21.
- Sporttrade: Colorado, Iowa, New Jersey and Virginia only.
- BettorEdge: 45+ states, by the company’s own account.
The age difference between ProphetX and Novig is worth noting if you are between 18 and 20: only one of the two is open to you.
California shows why the regulatory route matters. As of October 2026, sports betting is still not legal there, and a ballot measure likely will not appear before 2028. Underdog’s response was to convert to a peer-to-peer format in the state rather than wait. For the current legal status of state-licensed sports betting elsewhere, the American Gaming Association publishes state-by-state information.
Whatever route an app uses, expect the same onboarding checks. You will verify your identity with a government ID and personal details, and the app will confirm your location through device geolocation before you can trade, often again each session. Trading from a state the app does not cover, or from an excluded state like Nevada, will be blocked. Withdrawals may also trigger extra verification, so complete your profile before you need the money.
What Does an Operator Need to Build a Peer-to Peer Betting Platform?
An operator needs a matching engine, a way to seed early liquidity, identity and geolocation checks, payment rails, and a regulatory path, either a CFTC route or state licenses.
Matching engine. This is the order book itself: accepting orders, ranking them by price and time, matching makers and takers, and handling partial fills and cancellations. It has to be deterministic and auditable, because every fill is a financial record a regulator can ask about.
Early liquidity. A new exchange has a cold-start problem. If the first users see empty books, they leave, and the books stay empty. Most launches rely on a market maker or house liquidity to post two-sided prices until organic makers arrive. That needs its own risk controls and clear disclosure.
Settlement from official data. Contracts must settle from official data feeds, with defined rules for postponements, voids and stat corrections. The feed integration works much like it does for a sportsbook; our sportsbook API integration guide covers the data side.
Identity and geolocation. KYC at signup, age checks that match your regulatory route, and location checks on every trading session.
Payments. Peer-to-peer users move money often and expect withdrawals to clear quickly. Card, bank transfer and instant payout options all need to be in place before launch. See our post on sports betting payment solutions for the options.
Architecture for live spikes. Live trading concentrates order flow around key moments in a game, and the matching engine, pricing and wallet services all take that load at once. Plan for horizontal scaling and isolated services from the start; our iGaming platform development guide walks through the architecture choices.
Regulatory path. Decide early between a CFTC route and state licensing. It shapes your state coverage, minimum age, product structure and compliance team.
