The New York Times discusses it today.
At 1xInc.com, they claim "No central server! That means no bookie, and no Wire Act violation."
Hmm, if the Feds can't get to them, that would break up the legal logjam on internet betting. What will Eliot Spitzer do? There's no loot, and little publicity at this point, so I'd wager he sits on the sidelines.
Betbug, 1xInc's P2P betting service, links wagering offers in the manner of Kazaa. Betbug claims it will be operational this month. At the moment, most features appear to be "currently under construction." The race is on!