Ask HN: Legality of buy-in, cash-prize contests

Hey guys,

I'm wondering if anyone could help me figure out if an idea I had was legal within the limits of the illegal lottery laws.

If I'm not mistaken, the law states that you must be missing one of these three: 1) based on chance, 2) awards a prize, and 3) requires contestants to pay money or something of value to enter. My question is how tight is the definition of "based on chance"?

For example, if 5 people pay $5 to enter a contest online that involves being the first to draw and submit something with the winner taking the prize pool, would this be allowed?