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Because contracts of insurance have many features in common with wagers, legislation generally makes a distinction, typically defining any agreement in which either one of the parties has an interest in the outcome bet upon, beyond the specific financial terms, as a contract of insurance. Thus a bet on whether one's house will burn down becomes a contract of insurance, as one has an independent interest in the security of one's home.
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The issue of Betfair's Tasmanian licence to operate dominated the Australian media early this week as reports indicated that the first internet betting exchange will be open for business in the country next month.
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