Hi,

I am looking to start a competition website where it is free to join and when users sign up, they recieve a unique membership number that is randomly selected and displayed daily on our website, for a cash prize (paid via paypal)

Is there any licencing laws or pitfalls that I have to watch out for?

I have ideas to get round some of the laws - firstly, the competition is free to enter, so that skips being classified as "gambling" or "lottery" laws.
Secondly, I was thinking of having the winner selecting the next random number when they claim their prize. If the winner does not claim their prize, we would use a computer programme to randomly draw the next winner.

Please let me know

thank you