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TRADE UP CONTRACTS AND GAMBLING! Gambling is the wagering of money or something of value (referred to as "the stakes") on an event with an uncertain outcome with the primary intent of winning money or material goods. Gambling thus requires three elements be present: consideration, chance and prize. Wagering contract or gambling contract. A contract which is of the nature of wager. Contracts of this nature include various common forms of valid commercial contracts, as contracts of insurance. Contracts related to legal gambling activities become enforceable only where gambling is legal. A gambling contract is otherwise known as a gaming contract.