Legal Concerns with Private Money League

[TailbackU]

I have started a couple small fee entry money leagues and have neither received nor paid out any money yet. However, I want to make sure there are no legal ramifications. Are you guys aware of any problems or issues I may run into? It's looking like it may be something like 24 teams with an average of $40 per team. We're looking at somewhere in the neighborhood of $1000 paid out in prizes. Everything paid in will be paid out. Is there an IRS limit on this stuff, etc? I've posted the league on a lot of forums so I want to make sure I follow the law. If anyone out there can help me with some info I'd greatly appreciate it.

Thanks!

[stevethumb]

state laws vary but in general as long as you are not keeping any $ for "the house" then it is no different than your saturday night kitchen table poker game

[TailbackU]

Thanks Steve...any other ideas? Want to make sure here.