Agreements between the parties provided that the first part is paid to the second part regarding the occurrence of an uncertain future event and the second part of the first part, if the event does not take place, are called betting agreements or bets. In a betting deal, there should be a mutual chance of winning and losing. As a general rule, betting contracts are not valid. “A person with whom two persons who undertake to express opposing views on the issue of an uncertain future event agree that one wins from the other, depending on the determination of that event, and that others pay or give him a sum of money or another; None of the parties who have an interest other than the amount or share he will earn or lose, there is no other consideration for the drafting of such a contract by any of the parties. If one of the parties can win but cannot lose, but cannot win, it is not a betting contract. (see more) It would not be wrong to say that in horse racing, they need some necessary skills to determine the outcome of the race. But as we know, one of the essential features of betting agreements is that neither party should have control of the event. But in the case of horse racing, the party with the required skills gains some control over the event. This is why the legality of betting on horse racing is allowed, because it is not a simple game of chance. Illustrations 1 – A and B conclude an agreement in which A promised to pay B a sum of 20,000 times if India were to repay the world championship. This agreement is null and void because it depends on an uncertain event and both parties have opposing views on the event. If India wins, B wins the bet and A pays the agreed amount. Thus, one party will lose and the other will win. Figures 2 – In Figure 1, India wins the game, and there is an obligation on A to pay the amount to B, but it does not.
B opens an action against A regarding the amount of the agreed recovery. The legal action fails because the agreement between them is null and forth. The various nations of the common law have passed gambling laws on the basis of the United Kingdom Gaming Act 1845. Laws across Australia are based on page 18 of the Gaming Act, which states that betting and gambling contracts are null and void. The gambling and wagering laws of Malaysia, Singapore, Hong Kong and New Zealand are also based on the UK Gaming Act. A betting contract that is not entered into by initio is unenforceable in court and in S.