Ravi and Suresh agree that Ravi will pay Suresh ₹50,000 if a particular horse wins a race, and Suresh will pay Ravi a like amount if it does not. Neither party has any other interest in the race. Under the Indian Contract Act, 1872, this agreement is:

Section 30 of the Indian Contract Act, 1872 declares that agreements by way of wager are void, and that no suit lies to recover anything alleged to be won on any wager. A wager is an agreement under which money becomes payable on the determination of an uncertain event, each party having a chance of profit or loss and no other interest in the event; the present agreement, being purely speculative on the result of a horse race, is a wager and hence void. Wagering agreements are not illegal in the sense of being punishable, and collateral transactions are not necessarily tainted. The exception in section 30 preserves only agreements for prizes or plate of the value of ₹500 or more in horse races.