Which system involves individuals betting against each other rather than a sportsbook?

• A. Gambling
• B. Peer-to-peer betting
• C. Bet
• D. Prediction market

Answer: (B)

Peer-to-peer betting is a system where bets are formed between individual bettors who oppose each other, with the platform simply matching the two sides. Instead of a sportsbook (the house) taking the other side and setting the odds, you place a wager against another person, and the payout comes from that opposing bet. This direct opponent dynamic is what defines peer-to-peer betting.

Gambling is the broad activity of risking money on uncertain outcomes, but it doesn’t specify how bets are matched. A bet refers to a single wager and doesn’t describe the marketplace or the mechanism of who you’re betting against. A prediction market involves trading contracts on outcomes and is a broader forecasting-style market; while it can be peer-to-peer, the term peer-to-peer betting specifically emphasizes the direct bet against another person in the sports-betting context.