Section 125

A wagering contract is a type of contingent contract where two parties bet on the occurrence or non-occurrence of an event, with one party winning and the other losing. However, the Indian Contract Act, 1872, in Section 30, explicitly states that agreements by way of wager are void. This means that any contract that is essentially a wager is not enforceable under Indian law. The courts have strictly interpreted this provision to mean that any agreement whose primary purpose is betting or wagering is void, regardless of its form. For example, a contract between two parties to pay a certain sum based on the outcome of a horse race would be considered a wagering contract and thus void.