With examples that small-fry, you're getting into 'small claims' territory, which basically amounts to you having your little slapfight in front of a judge until he tells one of you or the other to knock it off.
> This is more akin to paypal, or some type of digital wallet
Minus any of the user agreements, established business licenses, regulations, and other financial grunt work that it took to get PP up and running (and even then, they have free reign to freeze your account with little to no recourse if they think you're out of line - plenty of stories of people being burned by this)
This is "more akin to" handing off your trading cards to the guy at work running the betting pool and trusting him not to fuck you over, except (A) trading cards are much easier to explain and (B) in this case you don't even know the guy.