We wanted to hold a tournament for a tailgating game. We want to have the participants to pay an entry fee and use that money to pay out the 1st, 2nd and 3rd place finishers. When I called the county sheriff�s office they stated that�s gambling. Please see the state law below. So since the players are the ones getting the payout is gambling or not?
� 16-12-20. Definitions
As used in this part, the term:
(1) "Bet" means an agreement that, dependent upon chance even though accompanied by some skill, one stands to win or lose something of value. A bet does not include:
(A) Contracts of indemnity or guaranty or life, health, property, or accident insurance; or
(B) An offer of a prize, award, or compensation to the actual contestants in any bona fide contest for the determination of skill, speed, strength, or endurance or to the owners of animals, vehicles, watercraft, or aircraft entered in such contest.