Legal Question in Business Law in California

First, questions regarding the laws of each state really should be answered by attorneys who are licensed to practice in those states. So, in a sense, you'd need to ask maybe as many as 51 lawyers (to include the District of Columbia). However, there is a simpler approach, and that is to design the competition so that it is highly unlikely to be considered a game of chance under any state's law. determining whether it qualifies would, of course, require you to disclose quite a lot more information than your question provides. California's Penal Code section 319 may be fairly typical of state laws defining lotteries, raffles, and similar gambling devices for giving away prizes (including money) based upon random (chance) outcomes.

I should add that even in states where gambling is "legal," it is highly regulated and taxed, and you can't engage in it freely, like running a lemonade stand, unless and until you comply with the laws of that state..........and a federal license may also be required.