Right, well the gaming laws state that if everyone just enters say a number, i.e lets say the competition is an iPod and if people wanted to win this they just had to hand in some money and then they went into a draw then it officially becomes a lottery, and all funds have to go to lottery. If the competition means answering a question, then the game holder can keep any profits.
P.s. This is the case in the UK due to a dealing my family has with them.
You cant have your cake and eat it... What the hells the point in having it then!!!