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It is ok...It is not an exception to wagering agreement as the exception to wagering agreement are:- EXCEPTIONS TO WAGERING AGREEMENT The section does not render void a subscription or contribution, or an agreement to subscribe or contribute, toward any plate, prize, or sum of money, of the value or amount of five hundred rupees or upwards to the winner or winner of any horse races.
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How come it is wagering agreement as the outcome of the event is in the hands of its participants. also such competitive games are exception to wager