I have a plan to create an online game with multi-level marketing.
Is it legal to create a game which costs money to buy, and then reward them with more money than they used to buy the game if three more people join using their username? (The money they are rewarded with is real money.)
If so, would it be legally classified as gambling, and would people have to be ~18 to play it?
EDIT: Please note, that all information will be present in the disclaimer, and there will be a warning of diminishing returns.
EDIT: It's an Egyptian-themed pixellated dungeon crawler . Zero gambling in game. The only way that even vaguely resembles gambling, is to simply the possibility of buying a character, in the hopes you will be rewarded. Almost everything is accessible through one character that you can control. You might consider buying more than one character, either because you want to access different class features or for the (potential) monetary reward.