Entrepreneurship and Innovation in the UK Betting Industry:

The emergence of Web-based ventures in 2000 offering person-to-Person (P2P) betting represented a genuine revolution in the oligopolistic United Kingdom betting industry. The radical innovation of P2P betting was that it enabled punters (the term for betting customers) to lay (accept) bets, a role that had previously been the preserve of bookmakers. This created a free market in betting, offering dynamic markets to punters and also enabling trading style activities as seen in financial markets. P2P betting flourished and by 2004 it was estimated that it accounted for up to 25-30% of UK horseracing betting turnover. The oligopolistic bookmakers, however, were less than enthusiastic about this innovation, challenging the P2P concept. In response, the P2P firms claimed P2P betting brought innovation and transparency to betting markets. This article considers P2P betting in context, and looks at its impact on the United Kingdom betting industry.