I have an iPad, my fiancé has an iPad2. We booth have Scrabble apps. We are able to play via Wi-Fi, and I thought we would be able to play via Bluetooth, but we can't figure out how to link them together via Bluetooth. Is this possible?

It is not possible. BT on the iPads is locked down to allowing on speakers/headphones and/or keyboards to pair with it.

I do not know if it is possible with a jailbroken ipad.

Scrabble does offer a bluetooth local play options. I've never had another iPad to play against, so these are guesses.

First I would just try turing on both iPads, starting Scrabble on both, and trying Local Network Play on both. Make sure one of you creates a new game. The dialog suggests turning off Wi-Fi if you are having problems connecting with bluetooth. Do this on both iPads.

The other possibility is to pair the iPads first. I don't think this should be necessary, but it's worth a try. Go into Settings > General > Bluetooth on both devices. If they are not appearing under the Discoverable list, try turning bluetooth off, then on again.

On one of the iPads tap on the other in the Discoverable list and follow the instructions on both iPads. It may take several tries. Bluetooth pairing can be tricky. It took me several tries to pair my iPhone and iPad, and I still don't' know what exact combination worked.

Now try the previous Scrabble instructions gain.

That's all I can think of. Well, other than going to the developer site and asking questions.