Author- Vashvi Singh
Introduction- When two parties are required for the formation of a contract, it is called a wagering contract. In this type of contract, the first party offers to pay the second party a particular amount of money should a particular event occur in the future, and the partner agrees to reimburse the first party if the specific event does not occur. When two parties agree that there is no other consideration for either party to accept such a deal based on the result of the event that one must win or lose, they have entered into a wagering contract. The parties typically claim to possess opposing or contradicting ideas or perspectives regarding a probable unknown or peculiar situation or event. Section 30 of the Indian Contract Act specifically talks about agreements by way of wager, as void. The section read as follows: “Agreements by way of wager are void and no suit shall be brought for recovering anything alleged to be won on any wager, or entrusted to any person to abide the result of any game or other uncertain events on which any wager is made.
History
Since the earliest periods when situations involving wagers occurred in British India, English common law has controlled them. However, in 1848, the Wagers Avoiding Act came into effect When the Mahabharata was in existence, one of the earliest mythologies in India, the opponent’s skills were tested through a game of checkers rather than a physical conflict. Some states regulated gambling by enacting the Public Gambling Act of 1867. Different states have different laws relating to wagering. In Odisha it is punishable by law to indulge in gambling, while in Maharashtra online betting is legalized.
Types of Wagers
1) Over Betting: This sort of betting is done during a game where the bettor makes his wager on the total number of goals or overall points by both teams using a combination of a given number, which is completely an improbable future event over which no one has any influence.
2)Under Betting- When a better lays a wager, they do so under the assumption that the sum of the goals and points scored by both sides will be less than or below a predetermined threshold. This kind of gamble also has something to do with how the game turns out in the end.
3)Moneyline Betting-This kind of wager is extremely commonest as the wager is placed on sport events and games, and the inference of the competition is the sole defining criteria in this kind wagering.
4)Spread Betting-In this type of wager this form of wager, the better places a stake on either the team that is considered to be the underdog in order for it to win or, in the event that it loses, to do so by a narrow margin, or on the team that is the most heavily favored to win the game.
5)Prop Betting- A prop, also referred to as a proposition bet, is a kind of side wager on aspects of the game that might not have anything to do with the ultimate result. In this case, the better places his bet on something like the first half of the game or any part of the game like the penalty shoot in football.
Essential elements of wagering contract
1) There is a risk of mutual benefit or loss.
The mutual likelihood of winning or losing depending on the uncertain outcome is a prerequisite for a wagering agreement between two parties. Because of this, a wager is not made when one side has an opportunity to win but not losing, a possibility of losing but not winning, or a chance of neither winning nor losing.
2)No control on events-Wagering contracts will be considered a wagering contract only if the events involved are not under the influence of any of the parties. If any of the parties has any control or influence over the events affecting a wager then it will not be considered a wager.
3)No personal interest should be involved-The parties should have no personal agenda or any personal scores to settle. The aim should be to either win or lose and not any agenda or aim. The parties should make this aspect clear to each other.
4)Equality-There should be no bias, every party should have the right and opportunity to win or lose, there should be no cheating regarding the equality of opportunity and the parties should not take undue advantage or any influence to win. There should be complete and fair equality.
Conclusion
Wagering contract has a lot of ambiguity attached to it as it has so many facets involved and its principles are vague and has been usually misinterpreted. the law related to it needs better explanation and clarity, so that the judiciary is able to interpret it to avoid glitches and confusion.
References
1)Wagering agreements and its essentials under contract act (ipleaders.in)
2)What is a Wagering Contract? Can it be enforced? – iPleaders
3)Legitimacy Of A Wagering Agreement (legalserviceindia.com)
