A system and method for providing side wagering in a wager-based game. Side wagers made by an observer of the wager-based game are accepted, where the side wager is associated with an event that is uncertain at the time the side wager is made. The event is associated with at least one player of the wager-based game. A payout based on the side wager is calculated and provided to the observer if the event occurs. In one embodiment of the invention, player ratings may also be provided to facilitate the making of side wagers.