I am about to launch an online betting site.  Here are the components of it,
please go through and verify the legality of each to be the best of
your ability.


Components:

- Our users create bets on everyday events.  Bets are made with BUX,
our currency, which are worth 10 cents each, which are purchased on
paypal and held in our account.

- We wrote software so that the winners of bets keep all of the money
in the pool, and automatically donate a small portion of the winnings
to charity.  They keep the majority of their winnings (90% or more,
depending on the multiple of the win).  We keep nothing for ourselves,
and are working on documentation with charities to link back to us.


- some other things to consider:

1. all bets created will be real situations, therefore this is not the
traditional gambling, which involves random variables (think internet
poker).  bets on sports and other taboo subjects are also prohibited,
are we now safe to allow bets?

2. to withdraw money, users must have a specified amount of money in
the system.  they can withdraw money at any time every 3-4 days, and
we will send a check or money transer.

3. we plan on investing some of the money sitting in the system into
liquidatble market funds.

4. the server for this site is in the United States.


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Please let me know what your advice is towards proceeding with this
site.  I do not want to get shut down before it can become a popular
service, but also do not see the purpose in writing legal agreements
until it is necessary.

I am planning a huge launch over this weekend (10/28-10/31)...so
feedback is appreciated!