I am planning to launch a social networking app where, for building an initial community of users, the primary motivation would be a rewarding contest. The contest would involve users earning points 1) based on their activity on the app and 2) the referrals they bring to the app. Some activities require skill while others require effort - but it all adds up to the overall score. The highest scorers every half-yearly would be rewarded a certain prize. There would be a thorough mention of the rules including an age restriction of 18. The reward for the top scorers would be lower than $100.

My queries are:

  1. Would this even qualify as a 'contest' and not a 'sweepstake' or a 'lottery'? Is it legal?
  2. If the app has a global user base, how should I plan for the legalities and framing of the contest terms and conditions? Do I need to see a lawyer for every country or an international lawyer (if they exist) for global compliance?
  3. Are there any legal case references involving a past lawsuit along similar lines, that I should make myself aware of?

Many thanks for the guidance.

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