This business model could very easily be seen as promoting online gambling, in violation of state or federal laws You may find it difficult to secure any form of payment processing for a gaming venture of this nature, given the concerns with illegal online gambling. You should consult with an experienced gaming attorney before considering any website operation involving prize, chance, and consideration - regardless of your role.
Disclaimer: The foregoing does not constitute legal advice or form an attorney/client relationship. Please contact an attorney for formal legal advice on any specific matter.
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