Explanation:

Section 30 of Indian Contract Act

30. Agreements by way of wager, void. Agreements by way of wager are void; and no suit shall be brought for recovering anything alleged to be won on any wager, or entrusted to any person to abide the result of any game or other uncertain event on which may wager is made.

Exception on favour of certain prizes for horseracingThis section shall not be deemed to render unlawful a subscription or contribution, or agreement to subscribe or contribute, made or entered into for or toward any plate, prize or sum of money, of the value or amount of five hundred rupees or upwards, to be rewarded to the winner or winners of any horse-race. Section 294A of the Indian Penal Code not affectedNothing in this section shall be deemed to legalise any transaction connected with horse-racing, to which the provisions of Section 294A of the Indian Penal Code apply.