Cases of Wagering Agreement

A wagering agreement, also known as a betting agreement, is a contract in which two or more parties agree to gamble on the outcome of an event. In a wagering agreement, the parties stake something of value with the hope of winning something of greater value in return.

The Indian Contract Act, 1872, governs wagering agreements in India. According to the act, wagering agreements are void and unenforceable by law. However, there are a few exceptions where a wagering agreement may be considered valid.

Here are some cases where wagering agreements may have legal validity:

1. Horse Racing

Horse racing is a popular sport in India, and betting on horse races is legal and regulated. The government of India has authorized certain bodies to conduct and regulate horse racing and betting. Wagering agreements made in connection with authorized horse racing events are considered valid and enforceable by law.

2. Lotteries

Lotteries are another form of gambling that is regulated and legal in India. There are several state-run lotteries that operate across the country. Wagering agreements made in connection with lotteries authorized by the government are considered valid.

3. Games of Skill

Games of skill, such as chess, carrom, and rummy, are legal in India and do not come under the purview of wagering agreements. Wagering agreements made in connection with games of skill are considered valid.

4. Contingent Contracts

A contingent contract is a contract in which the performance of a promise is contingent on the occurrence or non-occurrence of a certain event. Wagering agreements that are part of a contingent contract may be considered valid, provided they are not solely based on chance.

5. Stock Market

The stock market is a place where people buy and sell stocks in the hope of making a profit. While investing in the stock market is not considered gambling, some activities, such as day trading, may be seen as a form of gambling. Wagering agreements made in connection with the stock market are generally not considered valid.


In India, wagering agreements are generally considered void and unenforceable by law. However, certain exceptions, such as horse racing, lotteries, games of skill, and contingent contracts, may provide some legal validity to wagering agreements. It is essential to understand the legal implications of wagering agreements before entering into them to avoid any legal issues in the future.