If you had a site such as Pixelotto.com based in the United States would it be considered a lottery? Are there any rules or regulations about giving away large sums of money, like a million bucks?
The individual states would like control how that is handled. If you are off shore, then state or federal influence does not apply.
It depends on HOW you give away the money, if you are making people play a lotto of some sort then yes IT