I'm relatively new to Bitcoin but love the idea and will soon be accepting bitcoin in my own companies. (We provide online training/e-learning.)
But, just for fun I've set up what I would like to call a Bitcoin Lottery. Its a simple website and simple rules/terms.
- People pay bitcoin into the address provided on the site. (No names, no email, no forms to fill in.)
- Each dBTC (0.1 BTC) counts as a vote.
- The winner is chosen by a random number generator, obviously the more votes you have (the larger your initial payment/vote made e.g. 1 BTC = 10 Votes) the more likely you are to win. (If you paid 10 dBTC you would have 9 more chances to win than someone who only paid 1 dBTC.)
- Winnings (negative a 0.01% management fee and any payment transaction costs) are paid to the bitcoin address that paid the winning vote/payment.
My main objective is not to make money, just to setup a simple lottery for fun.
My questions are:
- Is my approach to this lottery a good idea, such as using each dBTC as a vote or should the vote amount/value be changed?
- Would there be any technical difficulties when trying to send payment (winnings) back to the address that paid for the vote. (See the website http://winbitcoin.net for further details.) I would assume large transaction fees would be required as the total amount (winnings) would be made up of lots of smaller initial payments. (I think that's how fees work anyway.)
- I understand that most of you are not lawyers, but aside from tax issues are there any other legal ramifications?
- The fee I would be taking (the 0.01%) would properly not even be enough to cover hosting cost, this does not bother me ATM. Would a management/hosting fee be seen to be unacceptable, should there be no fee or a smaller one?
Should there be a minimum vote (e.g. the 1 dBTC) and a maximum vote, say 5 BTC?
The website has only just gone live, so may be a bit bare but I will be personally paying a few votes later on tomorrow :D