Same issue got tossed in my face for this
In janurary I held a tournament at my university (FIU, Miami, FL. last august was 61 entrants, this time was 45) and I ran it as normal... Then when I tried holding another one, I was told I can't run another one cuz it was considered gambling..
I was given the notice about the FL law and it states
Whoever by herself or himself, her or his servant, clerk or agent, or in any other manner has, keeps, exercises or maintains a gaming table or room, or gaming implements or apparatus, or house, booth, tent, shelter or other place for the purpose of gaming or gambling or in any place of which she or he may directly or indirectly have charge, control or management, either exclusively or with others, procures, suffers or permits any person to play for money or other valuable thing at any game whatever, whether heretofore prohibited or not, shall be guilty of a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
Now I called BS on that because there are more rules of the law on that. Now in order for me to even get it running again (Regardless I'm not running anymore brawl tournaments at my school since i'm graduating). I had to go through the higher-ups of the university!
http://www.gambling-law-us.com/State-Laws/Florida/ (My reference)
now I read through everything on that site and words involving skill apply to amusement machines (coin operated, a la Arcade). Barely any mention whatsoever about console games! Most of the law mentions cards and games of luck... so wtf
But, the law states that one can't bet on the outcome of a game (Lets say, I bet $500 for such and such to win the tournament