Oh, I don't think they'll need a new law in most jurisdictions as soon as they find out about the "Auctions for money".
"Wait, so let me get this straight, people routinely 'buy' $100 for $20 on your service, and you profit $300 from the transaction from selling the 'bidding rights' to 'non-winning bidders'?"
"Yes."
"Oh, thanks. What determines who wins?"
"Final bid price."
"But paying $20 for $100, why, anybody should offer to pay $21.15 right?"
"Yep, you have to pick when to make your bid though, so you are not outbid."
"That sounds totally random, like a lottery."
"No, it takes some skill."
"Ah, thank you for clearing that up. Now, in your copy of the state code, look up 'games of skill' which offer a monetary prize."
Games of skill with monetary prizes are legal in all states. How you define a game of skill vs. a game of chance varies, but with no random element here, I doubt this would be considered gambling in any.
There are 6 where they may run into some sweepstakes laws though, I'm not sure. There are states where it is actually illegal to have a contest that is free to enter but awards a prize.
Hmm, seems I was wrong, organized games of skill for money (i.e. chess tournaments) are legal only by permit in some states. Yet WorldWinner.com operates in some of those.
"Ah, thank you for clearing that up. Now, in your copy of the state code, look up 'games of skill' which offer a monetary prize."
At which point they say "Don't be ridiculous. Every thrift store is a 'game of skill' with a 'monetary prize' by your standard. Have fun shutting down Aunt Ruth's House of Lamps and Doilies, pal."
"Wait, so let me get this straight, people routinely 'buy' $100 for $20 on your service, and you profit $300 from the transaction from selling the 'bidding rights' to 'non-winning bidders'?"
"Yes."
"Oh, thanks. What determines who wins?"
"Final bid price."
"But paying $20 for $100, why, anybody should offer to pay $21.15 right?"
"Yep, you have to pick when to make your bid though, so you are not outbid."
"That sounds totally random, like a lottery."
"No, it takes some skill."
"Ah, thank you for clearing that up. Now, in your copy of the state code, look up 'games of skill' which offer a monetary prize."