Abstract: The apparatus and methods described herein facilitate fair peer-to-peer gambling. Generally, the system receives bet statement(s) from authorized player(s) and/or game administrator(s). Authorized players(s) then enter whole number percentages representing their beliefs that the outcome of the bet statement will be true. The players entering the risk percentages are encouraged to be as fair as possible, because players may be forced into undesirable bet positions. The amount of points or money wagered are then automatically determined based on the risk percentage(s). Once the actual outcome is determined, the winning player is rewarded in inverse proportion to his risk percentage.

Abstract: Apparatus and methods for fair peer-to-peer gambling is disclosed. Generally, the system receives a bet statement from one of two authorized players. Either one of the two authorized players then enters a whole number percentage representing his belief that the outcome of the bet statement will be true. The player entering the risk percentage is encouraged to be as fair as possible, because the other player chooses which side of the bet he will take, thereby forcing the first player into the other position. The amount of points or money wagered are then automatically determined based on the risk percentage and a predetermined scaling scheme which limits potential gambling losses to levels deemed acceptable by the players. Once the actual outcome is determined, the winning player is rewarded in inverse proportion to his risk percentage. In other words, a winning player who is favored to win receives less than a winning player who is not favored to win.