BETTING, the staking or pledging of money or property upon a contingency or issue. The processes of betting may be best illustrated in connection with horse-racing, which fur nishes the members of the bettmg fraternity with their best markets. Bettors are divided into two classes— the backers of horses, and the bookmakers, or professional bettors, who form the betting ring, and make a living by bet ting against horses according to a methodical plan. By the method adopted by the profes sional bettor the element of chance is as far as possible removed from his transactions, so that he can calculate, with a reasonable prospect of having his calculations verified, on making more or less profit as the result of a season's engage ments. Instead of bac.king any particular horse, the professional bettor lays the same sutn against every horse that takes the field, or a certain number of them, and in doing so has usually to give odds, which are greater or less according to the estimate formed of the chance of success which each of the horses has on which the odds are given. In this way, while in the event of the race being won (as is usually the case) by any of the horses entered in the betting-book of a professional bettor, the latter has always a certain fixed sum (say $1,000) to pay, he receives from the backers of the losers sums which vary in proportion to the odds rven. Thus, if a bookmalcer is making a 1,000 book, and the odds against some horse is four to one, he will, if that horse wins, have to pay $1,000, while, if it loses, be will receive $250. It usually depends upon which horse it is that wins a race whether the bookmaker gains or loses. If the first favorite wins it is evidently the worst thing that could happen for the bookmaker, for as he is bound to receive the sum of the amounts to which all the horses except one have been backed, the largest deduction must be made from his total receipts on account of the first favorite. Very
frequently the receipts of the bookmalcer are augmented by sums paid on account of horses whic,h have been backed and neve.r run at all. Sometimes, although not often, the odds are given upon and not against a particular horse. Books may also be made up on the principle of betting against any particular horse getting a place among the first three. The odds in this case are usually one-fourth of the odds given against the same horse winning. Another mode of betting is that called a sweepstake, in which a number of persons join in contributing a cer tain stake, after which each of those taking part in the sweepstake has a horse assigned to him (usually by lot), which he backs, and the backer of the ,winning horse gains the whole stakes. If there are more persons taking part in the sweepstalce than there are horses running some of them must draw blanks, in which case of course their stakes are at once lost.
At common law, wagers are not per se, void, but statutes prohibiting betting have been passed by many of the States. VVhen one who loses a wager gets another to pay the money for him, an action lies for the recovery of the snoney. Wagers on the event of an election laid before the poll is open, or after it is closed, are illegal. In horse-racing, simple bets upon a race are unlawful both in England and the United States. In the case even of a legal wager, the authority of a stakeholder, like that of an arbi trator, may be rescinded by either party before the event happens. See WAGER.