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Legal definitions of gambling vary between jurisdictions but are most commonly built around three core concepts: an initial stake (the 'consideration'), an event with an uncertain outcome (chance) and a potential reward (or 'prize'). Prizes are often framed in terms of 'money, or money's worth' (Abarbanel, 2024).

A 3-way bet is a bet on an event that has three possible outcomes: Team A wins, Team B wins, or a draw. The odds on a 3-way bet will always be higher than odds on a similar two-way bet considering there is an additional outcome. Therefore, when one places a 3-way bet there is only one way to win and two ways to lose.