do I need a license???

[Shyone]

So, recently I've been brainstorming a bunch of online business ideas. I've come up with one, but am uncertain of whether I need a license or not. Basically, the website goes like this: One person issues a challenge. That person invests a certain amount of money - for example 1$. Other people then have a chance at accepting their challenge. The person who accepts the challenge must invest an equal amount - 1$. They then campaign for votes. Who ever gets the most votes wins the pot - (in the example's case it would be 2 $)

Is this legal or do I need a gambling license or something.

[simonsta]

I don't think this is gambling as it requires skill and the judgment of others - 'chance' doesn't come into it.
I would look at the ethics and risk - how will you stop fraud? How will you stop someone employing an army of minions to vote for them all the time.... or create a bot to vote.... How will you resolve disputes?

Also, how will you make money from this model? Whats in it for you? If its on ad revenues then thats a very small slice of the pie for the risk you'd carry and potential overhead in moderating the platform.

Despite that, it looks like a simple model that could work if you can make sure the risks are mitigated.

[Jim11]

I would say you need sophisticated systems to make something like that work.

You can't just make a site where people post challenges in something very basic, such as a thread.

You would need a site where people put up money via something like credit card, paypal, etc, into a secure pot, combined with a fraud proof voting system. That could work, but it would cost a fair bit of time and money to implement and wouldn't be easy at all to generate revenues in early stages.

Not sure about licensing for this.

[Ponce]

Who is he? where does he comes from?.........with only 9 post on the board I would rethink twice about it.........and ...........in what other board did I see this same thread

[Shyone]

Thanks everyone for the advice. It was just an idea I was throwing around. All in all, I think it's too risky, although I'm still brainstorming ideas.



Ponce:

I don't see why you would think the number of posts I have is even relevant to my ability to run a website.