Because of this, the partnership was able to collect the death proceeds as tax-exempt proceeds on a life insurance policy, rather than as the taxable proceeds of a wagering contract
upon a life where the beneficiary holds no insurable interest.
That right is limited to bona fide sales of that policy taken out in good faith," as opposed to cover for a wagering contract
, the court says.
It shall further include wager, wagering contract
, totalisator and pool transaction in relation to any game or sport but shall not include a lottery or betting on a horse race when such betting takes place-
If the applicant has no insurable interest at the time a policy is taken out, the proceeds will be taxed as gain from a wagering contract
By passing these statutes and providing an implicit definition of what constitutes insurance, the English Parliament made an important distinction between an insurance contract and a wagering contract
LOS ANGELES -- TVG, America's Horseracing Network, announced today that it has discontinued negotiations on extending its television and advance deposit wagering contract
with Churchill Downs Incorporated ("CDI").
The Tax Court held that the contract was in fact a wagering contract
, thereby making the exclusionary clause provided in Section 221b)(1} of the 1939 Code inapplicable and requiring the full amount of the proceeds to be included in gross income.
not always easy to distinguish illegal wagering contracts
from other 'aleatory' contracts that have a legitimate commercial or other purpose and are not considered contrary to public policy.