Online Gaming Tournaments!

[SubZeroGames]

Hey there guys, about 2 years ago, it was my dream to open up a LAN center, but never did due to funding, and reality of the matter is, the demand for somethen such as a LAN center just isn't there anymore.

So i have always loved the idea of online tournaments for cash prizes and other stuff...

So recently i have been investing in starting my own site like GameBattles: The World Leader in Online Video Game Competition Online Video Game Tournaments & Online Competitions - PS3, XBOX Tournaments | VirginGaming.com.

These sites have it where you can deposit money in to a virtual account and it shows how much cash is in your bank and you can compete in matches and challenges.

What i really wanna do is something like this:

Competitive Community Video Game Ladders and Tournaments for PC, PS3, XBox 360 and more!

fragged nation allows you to purchase credits and use them to enter in matches and challenges. They have a virtual bank that displays the "Credits" you have. And they offer withdrawal options and such.

Now for my issues/concerns. I have described the idea of the sites above. The one i'm most similar to is the fragged nation with the "credit" system.

My questions are:

1.) where do i find out about laws about selling credits on my site?

2.) Laws state that if anyone makes over 0 dollars on online gaming of skills websites they must report it. That part is clear, but then it says... If one of any persons makes over 500 dollars, i am required to send them a 1099 tax pdf. Why do i have to send them that? And what license do i need to be eligible to send them out?

My overal question is what is everything i need in order to operate a site like VirginGaming.com and FraggedNation.com?

I have the website, and i have the software already developed. I have invested a bit of money into the site and software, and i'm i'm missing now is how to operate it legally.

A big question i have as well, is all those sites have TOS that describe legal matters with age, locations, and transactions through out the site... Is having a TOS that describes everything the only thing i need to operate this type of site...or is there more?


Thanks and hope to hear from you soon.

[cube3]

Sounds good but will game developers allow this? Especially for consoles like PS3 and Xbox. How are you gona implement this on xbox live or the PSN ?

[SubZeroGames]

With all due respect that was totally irrelevant. The idea i'm trying to pursue, has been done already. The links provided are doing them. The reason why sites get away with it, is because they are not taking ownership in the games. They are copy righted of its respected owners. Xbox live is simply a service host that is up and running for those respected owners to host off. Same with Play Station.