Legal Definitions - wager

Wager

A wager refers to money, property, or any other item of value that is risked on the outcome of an event that is uncertain or unknown at the time the risk is taken. Essentially, it is a bet or a gamble where one party promises to give something of value to another party if a specific uncertain event occurs, and receives something in return if it does not.

• Example 1: Two friends are watching a major football game. One friend believes their favorite team will win by more than ten points, while the other disagrees. They agree that whoever is wrong will buy the other lunch next week.

  Explanation: The "wager" in this scenario is the lunch. Its exchange depends entirely on the uncertain outcome of the football game's final score difference.

• Example 2: In a friendly office pool for a popular reality TV show, each participant contributes $5, predicting which contestant will be eliminated next. The person who correctly guesses the eliminated contestant wins the entire collected sum.

  Explanation: The $5 contributed by each participant is their "wager." This money is risked on the uncertain event of which contestant will be eliminated, with the winner taking the pooled wagers.

• Example 3: A homeowner is trying to predict the exact date the first significant snowfall will occur in their town. They make an agreement with a neighbor that if the snow falls on their predicted date, the neighbor will mow their lawn for a month; otherwise, the homeowner will mow the neighbor's lawn for a month.

  Explanation: The "wager" here is the month of lawn mowing services. This service is risked on the uncertain event of the first significant snowfall occurring on a specific date.