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"?
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?
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?
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?