I need to figure out what kind of laws there would be for websites when it comes to user's spending money for a chance to win credits (these are used to do extra stuff on the website).
There will be 100 Tickets available for users to purchase at $1 each. Once all 100 are purchased, ten random winners are chosen. These ten winners all win a % of the winnings (total of 5000 credits to be shared). Is something like this going to get me in trouble. Also, does it depend on where I live (Utah, United States)?
If the above is legal and will not get me in trouble, then how about this one below:
Just as above, users can buy a ticket for $1. But instead of them trying to win credits, they can win a % of the total money that was spent on buying the tickets. Would this be fine to do on a website without getting any grief or getting in trouble?