Either way, this is certainly illegal in at least 6 US states. Believe it or not, you can't have games of chance with cash prizes even if entry is free in some states. Nobody ever gets prosecuted for doing that though.
My advice of course is to do the same if you haven't already. I'll be happy to give you my impressions but I'm no substitute for a lawyer who understands the ins and outs of your product. I can at least recommend a good one in the field of gaming law.
//EDIT: Just saw that B$ are banana bucks. How do people get these and what happens when they "cash out?" I watched your "intro" video [which wasnt very prominent on your homepage] and still dont really have answers to most of the questions I raised
As far as the legality, I really wouldnt be so sure about your 3 prong test, ESPECIALLY if you dont have a lot of money to fight the DOJ. Will they come after you? Depends on how big you get and how well you hide, but if they do come after you, you cant just say "Sorry, we thought it was legal" and shutdown the site and expect them to stop going after you.
When you say, "Furthermore users can’t wager or bet on teams, they simply pick which team they support in a match." What does this mean? Why would a user "pick" a team? What happens if they pick a team and that team wins? What happens if they pick a team and that team loses?
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The only model they could legally work is:
Allow people to gamble with real money if it's legal where the person lives, and force them to use fake money if they live where gambling is illegal.
Even if Americans have to leave the country to receive their payouts, American courts will still likely find this site in violation of anti-gambling laws.
Thanks for the Betable shoutout as well :)
As a sidenote, claiming that there is no wagering, is also false. Chosing and supporting a team does involve wagering, only the wager is static and proportionate to the participants. Then there is a formula that adds up and/or devides wagers to the participants.
That said, I like the idea and love that you are willing to take some risks in these gray areas. I'm rooting for you. Now let me in!
