Is bet valid when a two party bet was really a three party bet unknown to one of the bettors?

Question

Two parties enter into a wager and one of the parties cut another person in for half of the money the whole time. Even after the other bettor told him he didn't bet people he didn't know and at no time ever disclosed that fact.Thus making it a three party wager for unequal amounts.One person puts up two hundred against two people betting one hundred.

Answer 1

yes, but i'm sure the one who put up 200, if they lost, would use this reason to cry foul.

Answer 2

Yes, the bet is valid.  You only have a wager with one person, for $200.  That is the A/B contract.  The person you bet with has a second wager with the third person for $100.  That is the B/C contract.  In reality the person you bet with has "hedged his bet" by betting half the amount of the the bet with you on the opposite team with person C.  He is free to do that.  If you win the bet he owes you $200, how he gets it is no business of yours.