Is it illegal for a lan center to host a cash prize tournament?

Is it considered gambling?

If the answer is yes then how does one go about making it legal?

Do any Centers feel that they benefit from hosting cash tournaments?

 Any input would be great. Thanks
 

there are benefits to running any event especially tourneys.  I'm not that good at it and have only done a few.  but when you start keep prize money enough to interest the teams and don't allow more teams than you can handle.  with 4v4 on console I limit my teams to 6.  even then it takes a while for double elim.  give each team a rule-set at sign up.  and have just basic giveaways on hand to keep people amused.  stock up on energy drinks too.

contact city hall about legalities and how to word them in the sign-up.  you will get sent around to many people and then some dept. will give you the okay.  usually depends on prize amount.

if you are at the igames expo there is usually an in depth conversation by those who are much better qualified to answer these questions.  But, yes they can help business.  do them right though. 

Laws vary by state as well.

What state are you in? 

Renegade Sally:

Virginia

Only a promotions attorney can provide you with legal advice.

If you are going to hold any cash tournaments you should research any local laws that may apply. Generally, if you are awarding any kind of prize, you are supposed to have official contest rules that outline the entire procedure for entering, competing, winning, and contact details. 

For the coordinated cash prize tournaments we have been running we have not restricted the state of Virginia.