tax-law corporate-law sport money-service
Is it legal to crowdfund the cash prize that would be payed to the winner of a 1-on-1 sporting event?
<p>I am personally planning to build a donation-based crowdfunding sporting (like chess, shogi, go, etc.) website . I would like to know if it is legal to gather donation from the users then pay the winner of the 1-on-1 event with the total or part of the prize pool.
Also is there any difference if only the event participants add money to the prize pool? In such case would it kind of look like "betting"?</p>

<p>If it is legal, what are the conditions? Do I need to do it as a corporation ? or can I do it without having any company?</p>

<p>Does it depends on the country?
If yes, shall I block that feature to the users located in the countries where it is not allowed? Or it is all about where the servers or legal entity is located?</p>

<p>Do I have to care about the taxes the events' winners have to pay? Or once the money is paid to them, they have to handle themselves all the tax part?</p>

<h2>You are running a business</h2>

<p>One that holds sporting events and sources it’s funds from the public who are interested in supporting those events. It doesn’t matter if you business is for profit or not-for-profit it’s still a business.</p>

<p><strong>You are no different from any other business.</strong></p>

<p>All the normal laws apply to you - tax, liability, insurance, employment, contract etc. you need to do what other businesses do - hire a lawyer and accountant.</p>
