Accepting wagers

What does Accepting wagers mean in American Law?

The definition of Accepting wagers in the law of the United States, as defined by the lexicographer Arthur Leff in his legal dictionary is:

Taking bets on matters of chance, e.g., the outcome of a horse race before it is run. The implication is that the acceptance of wagers is a more or less regular activity, and as such it is usually statutorily declared a criminal (ordinarily misdemeanor) offense (in which statutes “accepting wagers” may be part of the definition of the offense). See bookmaking. Not all wagering, however, is unlawful. In some jurisdictions the government itself lawfully accepts wagers, as in the case of a state lottery, and other jurisdictions have specifically validated the practice even when privately operated, though ordinarily under extensive governmental regulation, e.g., in the gambling casinos of Nevada and New Jersey. Moreover, not all accepting of wagers on matters of chance is seen as unlawful gambling. Insurance companies, after all, in effect regularly “bet” that insured events will not come to pass more frequently than the premiums they charge can cover. And stock market operations also include a large element of attempting to outguess other persons about unpredictable future states of the world. Indeed, it has been stated that “the gambling known as business

looks with haughty disdain upon the business known as gambling.” See A. Bierce.