Chapter XIII. Gaming and Wagering Contracts

In this chapter we will treat of certain contracts which depend for their effect of profit or loss upon some uncertain event.

A lottery is a distribution of prizes by lot or chance. Those who take part in a lottery ordinarily pay down a smaller sum of money in consideration for the chance of obtaining a larger sum or something of greater value, but it may happen that they lose by the transaction. The event is settled by the casting or drawing of lots in some form or other. English municipal law now prohibits lotteries where the distribution of prizes depends on mere chance, not on art or skill. The prohibition does not affect art unions carrying on business under a royal charter or under a constitution and rules approved by the Privy Council; but it does affect distributions of prizes on art union principles by persons other than art unions. However, inasmuch as a lottery is nothing more than the purchase of an uncertain chance, it is not necessarily unjust or in any way contrary to the natural law. If there is no fraud connected with the drawing of lots or the distribution of the prizes, and if the sum paid by those who take part in the lottery is to some extent proportionate to the chance of winning a prize and to its value, a lottery will be lawful as far as conscience is concerned, for the municipal law in these matters is penal.

Gaming is playing at any game, sport, or pastime for money or anything of value which is staked on the result of the game, so that it is lost or won according to the success or failure of the person who staked it.

Clerics are forbidden, as we shall see, to play at games of pure chance with scandal to others and loss of their own time. English law also makes all gaming contracts null and void so that they cannot be enforced in English courts of justice.

But here we consider the question not as affected by positive law, ecclesiastical or civil, but as it is in itself. Is gaming in itself morally wrong ?

Apart from abuse, to play games of skill or even of pure chance for a stake is not immoral. I may spend my money in moderation on recreation, or I may make a present of it to others if I choose. There is nothing immoral in agreeing to hand over a sum of money if I am beaten in a game either of skill or of chance. This perfectly lawful action will, however, become unlawful if one of the parties is compelled to play against his will, or if cheating and fraud are practised in the game, or if there is no chance of success on the part of one of the players (unless he knows this and freely consents to play in spite of it), or if the parties have not the money which they stake or at any rate not the free disposal of it on account of its being required to pay their debts or to support themselves and their families.

Moreover, although gaming in itself and under the conditions which have just been laid down is not immoral, yet it is a dangerous pastime for many, and easily leads to abuse, sin, and ruin. Especially is this the case when gambling is carried on in houses kept for the purpose, where all kinds of bad characters congregate. The keeping of such dens of iniquity is rightly punished by the law.

Wagering or betting is the making of a contract on an unascertained event, past or future, by which the parties are to gain or lose, according as the uncertainty is determined one way or the other.

Wagering contracts in general are not enforceable in English courts of law, although there are some exceptions to the rule, but here we consider the matter from the point of view of conscience, To make a bet is not sinful provided that the subject-matter of the wager is not sinful nor an incentive to sin, provided that the event is really uncertain for both parties, and provided that both understand the bet in the same way and are prepared to stand by the event and pay in case of loss. Even if one of the parties is certain as to the truth of the matter in question and he makes this known to the other, if the latter chooses to persist in his contention and stakes his money, the other will be justified in taking it.

What was said above about gambling is applicable also to betting. . Although it is not sinful to stake a moderate sum of money of which one has the free disposal on some unascertained event under the conditions laid down above, yet a strong and dangerous habit may easily be formed by indulgence in the practice, and then sin, misery, and ruin to self and others are not far off.

There are certain modes of gambling which are practised now on money and produce exchanges. Dealings in“ futures ” and “ options ” and “time bargains ” are for the most part merely speculative transactions, and do not differ essentially from betting as to what will be the price of stock or of some commodity at a future date. ‘‘ Rigging the market” and similar devices are means employed by operators to influence the market in their own favour. These means are, of course, unjust, and besides inflicting loss on competitors, they do great harm to outsiders by disturbing the natural prices of commodities, and not infrequently produce irreparable and far-reaching ruin.