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What are the requirements to have a contest, with an entry fee and a prize based on the number of entries?

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I am considering holding a contest for submission of plans/ideas for the armor project. I would like to know legal info as to what the requirements are for having an entry fee and the prize based on the merits of the submission and the amount based on the number of entries received

http://tech.groups.yahoo.com/group/ArmorProject/

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  1. If it's not a lottery, then you can pretty much set your own rules -- including a fee for entry It doesn't appear to be a lottery because there is "skill" involved in the process. If you start to introduce "chance" into the selection process, then you may run up against the lottery/sweepstakes laws.

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