Bet P2P without the house using crypto escrow betting

Escrow-based betting allows users to place secure crypto wagers with no middleman. Learn how it works and why it’s gaining ground.

Author : Team Gamdom

Published : 06/27/2025

Escrow betting: Peer-to-peer wagering without the house

When you think of placing a bet, you likely envision a huge sportsbook or a trusted casino like Gamdom holding your funds, setting the odds, and taking a small share. This setup has been usual for years, where the 'house' controls most of what happens.

Today, a new way of betting is gaining attention, peer-to-peer (P2P) betting. It allows two people to bet directly with each other, without a middleman. This means no bookie, no fixed odds from a house, and no one taking a cut from your winnings. Instead of relying on a betting site to manage the bet, the two parties use a system called 'escrow' to keep things fair.

Escrow is not new, but when paired with crypto and blockchain, it opens the door to a betting system that is more open, private and gives full control to users. In the modern world, you don’t have to trust a company; you just have to trust the code.

What is escrow-based betting?

Escrow-based betting is a way for two people to make a wager, while a third party, usually a system or a smart contract, holds the money safely. Both bettors send their funds to the escrow, and once the result is confirmed, the winner receives the full amount.

For instance, two friends are betting on the top futsal tournaments to bet on. Each puts US$100 into an escrow account. Once the game is over, the escrow releases US$200 to the winner. This removes the need to trust each other with the money. The funds are locked and can’t be touched until the bet is settled.

In many cases, the escrow system is automated and runs on the blockchain. These systems are known as smart contracts. Once set, they follow rules without human help. If the event ends in a win for one person, the smart contract sends the money their way.

This form of betting is popular as it gives more freedom to the bettors. They don’t have to accept odds from a sportsbook. They can agree on terms with anyone, anywhere in the world. In the growing P2P betting platforms, escrow systems are a game-changer.

How crypto escrow platforms enable secure P2P betting

Crypto escrow platforms are built to make secure trades or bets between two people. When someone uses one, they send crypto to a system that locks it in place. That crypto stays locked until both sides meet the agreed terms. This makes it ideal for betting, especially when the two people don’t know or trust each other.

One of the biggest advantages of using crypto escrow for betting is anonymity. You don’t need to give your name, card details, or email. Just a crypto wallet is enough. Everything happens on the blockchain.

Another major benefit is transparency; the rules of the bet and how the funds move are clear. Anyone can check them, and there’s no behind-the-scenes trickery or secret fees.

Traditional sportsbooks often take a large share of the bet as profit. But with crypto escrow, the fees are lower, and may charge only a minimal fee. The smart contract or platform only helps manage the funds.

Since no central authority is involved, users don’t have to worry about biased decisions. The system runs as written, without changing the rules.

This new form of betting allows users to take full control. As more people care about privacy, fairness, and cost, crypto escrow betting continues to grow.

Well-known platforms using crypto escrow in P2P betting

Many platforms are now using escrow for secure crypto trades, and some of these can be used for custom bets between users. While not all of them are made just for betting, they show how escrow systems can work in P2P setups. All of these platforms show the same idea: that a trusted system in the middle can help two users bet, trade, or do business without ever meeting face-to-face.

Here are some popular crypto escrow platforms:

Hodl Hodl

Hodl Hodl is made for crypto trading, but it uses a multi-signature system where two users and the platform all hold part of the keys. This method helps ensure no one cheats. With a bit of setup, it can also be used for custom bets between two people.

AgoraDesk

AgoraDesk, which used to be called LocalMonero, works similarly. It focuses on private trades using Monero (XMR), a crypto coin built for privacy, so you don’t have to ask yourself ‘Can the crypto market be manipulated?’. Its structure also fits casual P2P wagers.

LocalBitcoins

LocalBitcoins was one of the earliest platforms to use crypto escrow. While it shut down in 2023, its model shaped many of the tools used today. It showed that even strangers could trust each other if the system between them worked well.

Trustap

Trustap is a platform that uses escrow logic but isn’t based on crypto, allowing users to pay for goods and services with money held in escrow until both sides are satisfied. While it’s not built for bets, it’s a strong example of how escrow systems can support fairness in deals.

Why gamers and bettors are turning escrow-based betting

The move toward escrow-based betting is not just about better tools; it’s about mindset. People who are already used to crypto tend to value privacy, control, and freedom. They don’t want a large company making choices for them or holding their money.

This kind of betting works mainly well in online groups, gaming circles, or among friends who want to place fun bets but still keep things fair. It also makes it easier to place bets on events that aren’t covered by traditional sportsbooks, like niche sports, esports matches, or casual competitions.

For instance, two fans of a YouTuber’s stream could bet on the outcome of a live game played by the greatest basketball players of all time. Since no betting company will offer that, they could use a smart contract to manage the wager. The contract holds their crypto and sends it to the winner, without needing approval from anyone else.

In short, escrow betting fits a fast-moving, online-first world. It’s flexible and easy to adapt, especially for digital natives.

Risks and red flags to watch out

While escrow-based betting sounds like a strong option to sportsbooks, it’s not without risks. The biggest problem is disputes. If both sides claim they won the bet or don’t agree on the outcome, things can get stuck. Some platforms have clear rules and dispute support, while others don’t. If a smart contract doesn’t include a way to confirm results, a bad player might try to cheat.

If you’re wondering how to know if a smart contract is safe, reputation is key; just because a platform offers escrow doesn’t mean it’s safe. Some may be built poorly or lack clear rules. Before using any site, it’s best to read what other users have said, check reviews, and look into the platform’s track record.

It’s also important to note that not every escrow platform is made for betting. Many are built for trade and may not have features like betting result tools or time-based release settings. That’s why doing your research (DYOR) is a must.

Good escrow platforms will have strong rules, open communities, and honest user support. If those things are missing, it’s better to wait or look elsewhere.

How escrow-based betting relates to Gamdom

While Gamdom doesn’t run on an escrow model where users create custom bets with each other, it shares some of the same goals. Gamdom focuses on fast and transparent gameplay, which attracts many of the same users who are drawn to crypto and P2P tools.

Gamdom’s provably fair system is the biggest link. This tool allows players to check the fairness of each result using blockchain-like verification, much like how smart contracts provide trust in escrow betting. You can’t change the outcome, and neither can Gamdom, which makes the system more reliable.

Also, Gamdom offers a wide range of crypto-based games like roulette, crash, and case battles, which appeal to users who like the low-fee, high-control nature of crypto platforms. While you can't create a custom bet with a friend, you can still wager in fast-paced games with open odds and play using Bitcoin (BTC), Ethereum (ETH), and other altcoins, keeping you in control of your funds.

Lastly, Gamdom has community features like chat rooms and giveaways, which support social wagering and interaction, similar to what many users enjoy in P2P betting groups. While it’s not full decentralisation, it offers a taste of it in a more polished, accessible format.

What’s next with escrow-based P2P betting

The future of peer-to-peer betting with crypto and escrow looks exciting. More platforms are starting to use smart contracts, which are automatic and clear. These contracts can check results, hold money, and send payouts without human help.

You may also see hybrid platforms, places that mix the look and feel of a sportsbook with the freedom of P2P control. These sites could offer markets created by users instead of companies, with tools to build custom bets.

Another trend is the rise of DAO-led betting pools. Decentralised Autonomous Organisations (DAOs) are groups run by code and shared control. In betting, they can allow a group of users to set rules, make pools of money, and vote on results. This opens up a social side of betting, where people can join together instead of betting alone.

As these tools grow, you might also see more social wagering. People could use apps to bet with friends, streamers, or communities, all backed by escrow. This makes betting feel more like a shared game than a cold transaction.

Bet P2P with control

Escrow betting is a fresh take on how people place wagers. It gives users full control over their bets while removing the need to trust a central company. Instead of being stuck with house odds or hidden rules, you set the terms and pick who you bet with.

Still, that freedom comes with the need to be careful. A poorly made system or unclear terms can lead to trouble. That’s why using trusted platforms and smart contracts with strong rules is important.

If you’re looking for a fairer, more open way to bet, escrow-based P2P betting could be the answer. With crypto, smart contracts, and decentralised tools, you’re not just placing a bet, you’re shaping the future of wagering.

Frequently Asked Questions (FAQ)

What is escrow betting?

Escrow betting is when a trusted system holds the money from two bettors until the result is clear. Once a winner is confirmed, the system sends the winner the full prize.