Hi guys I'm working on the idea of creating a "stock market" simulation (not with real stocks, so SEC and that crap is not an issue) where users can enter the competition by paying a small fee (say 2$) and then every week the winner of the chart (the best "portfolio") get's all the money collected (minus my "administrative fee"). Do you think I can have legal problems? Is this gambling? Is this a sweepstake? A lottery? Should I ask a licence? ...??? TYA!
You should look around the Net. There have been thousands of these games around for years. There are most likely instances where you will need to make exceptions for people in certain areas. I remember seeing a video game one in a video game magazine about a year back. Also, the state you are in might call this a "raffle" or even a "lotto." And yes, you can have legal problems if you don't do things right. Picking stocks might be considered a "game of skill" in your state instead of a "game of chance." This is not something to just do and hope you are right. I'm not an attorney so do you own due diligence. I'm just chatting--not legal advice.