Terms of Service

These Terms of Service (“Terms”) govern your access to and use of the Challenge platform (“Platform”), operated by Challenge LLC (“Challenge,” “we,” “us,” or “our”). Please read these Terms carefully before creating an account or using the Platform.

1. Acceptance of Terms

By creating an account, accessing, or using the Platform, you agree to be bound by these Terms, our Privacy Policy, and our Responsible Gaming Policy. If you do not agree to these Terms, do not use the Platform.

Your continued use of the Platform after any modifications to these Terms constitutes acceptance of the updated Terms.

2. Eligibility

To use the Platform, you must:

Be at least 18 years of age
Be located in a US state where skill-based gaming is permitted (see Section 3)
Have the legal capacity to enter into a binding agreement
Not be a person barred from using the Platform under applicable law

We use identity verification services to confirm your age, identity, and location. You may be required to complete identity verification before withdrawing funds.

3. Restricted States

Due to varying state laws regarding skill-based competitions, the Platform is not available to residents of or persons physically located in the following states:

Fully restricted: Arizona (AZ), Arkansas (AR), Connecticut (CT), Delaware (DE), Louisiana (LA), Montana (MT), South Carolina (SC), South Dakota (SD), Tennessee (TN).

This list is subject to change as state laws evolve. It is your responsibility to ensure that participating in skill-based competitions is legal in your jurisdiction.

4. Account Rules

One account per person. Each individual may maintain only one player account. Creating multiple accounts is strictly prohibited and may result in account termination and forfeiture of funds.
Accurate information required. You must provide truthful, accurate, and current information during registration and maintain its accuracy.
Account security. You are responsible for maintaining the confidentiality of your login credentials. Notify us immediately of any unauthorized use.
Identity verification (KYC). You must complete identity verification before making your first withdrawal. This may include providing a government-issued photo ID and a selfie for biometric verification.
Non-transferable. Accounts are personal and may not be sold, transferred, or shared with any other person.

5. Skill-Based Gaming

Challenge is a skill-based competition platform. The outcome of every match on the Platform is determined predominantly by the relative skill of the participants, not by chance. This is consistent with the legal “predominance test” applied in most U.S. jurisdictions to distinguish skill-based contests from gambling.

Challenge does not develop games. Challenge provides infrastructure that third-party game developers embed into their existing web-based games to enable real-money skill-based competition. Challenge reviews and approves all games before they are listed on the Platform to ensure outcomes are determined predominantly by player skill. Entry fees are not wagers or bets — this is not gambling.

6. How It Works

Challenge provides a competition layer that developers embed into their web games, enabling players to compete against each other for cash prizes. Here is how the system works:

Entry fees. Players pay an entry fee of $2 or $5 to join a match, depending on the game. Both players in a head-to-head match pay the same entry fee. Developers choose the entry fee tier when they register their game.
Prize pool. Entry fees from both players form the prize pool for that match ($4 for $2 games, $10 for $5 games).
Fee structure. The prize pool is distributed as follows: approximately 85% to the winner ($3.40 or $8.50), 10.5% platform fee to Challenge ($0.42 or $1.05), and 4.5% revenue share to the game developer ($0.18 or $0.45).
Matchmaking. We use skill-based matchmaking to pair players of similar ability levels when possible.

Specific entry fee amounts, prize structures, and game rules are displayed before you enter any match. By entering a match, you agree to the stated terms for that match.

7. Deposits & Withdrawals

Deposits

Accepted methods: debit/credit card, ACH bank transfer
Minimum deposit: $20
Card processing fee: 2.9% + $0.30 per deposit (ACH deposits are free)
Deposits are processed through our third-party payment processor (Stripe)
Deposits are non-refundable once used to enter a match

Withdrawals

Withdrawal method: ACH bank transfer
Minimum withdrawal: $10
Processing time: 1–3 business days
Identity verification (KYC) must be completed before your first withdrawal
Challenge reserves the right to delay withdrawals pending fraud or compliance review

7.1 Match Dispute Policy

If you believe a match result was unfair, you may file a dispute through the Platform. The following rules apply:

Filing window. Disputes must be filed within 48 hours of match completion.
Valid grounds. Disputes may be filed for suspected cheating, technical malfunction, collusion, or other issues affecting match fairness.
One dispute per match. Each player may file only one dispute per match.
Review process. Disputes are reviewed by our team using AI-assisted analysis and a final human decision. We aim to resolve disputes within 48 hours of filing.
Possible outcomes. After review, we may: refund your entry fee, take no action, issue a warning to the violating player, or suspend the violating player's account.
Finality. Challenge's internal review decision is final for the purpose of this internal process.
Arbitration. If you are unsatisfied with the internal resolution, you may pursue formal arbitration as described in Section 12. This internal dispute process must be exhausted before initiating formal arbitration.
Abuse. Filing frivolous or excessive disputes may result in account restrictions.

8. Prohibited Conduct

You agree not to engage in any of the following:

Cheating — Using any unauthorized software, scripts, macros, or exploits to gain an unfair advantage
Bots and automation — Using bots, AI, or automated tools to play matches
Multi-accounting — Creating or controlling more than one account
Collusion — Coordinating with another player to manipulate match outcomes
Intentional losing — Deliberately losing matches for any purpose, including facilitating transfers of funds (anti-money-laundering)
Location spoofing — Using VPNs, proxies, or any technology to mask or misrepresent your physical location
Abusive behavior — Harassing, threatening, or engaging in abusive conduct toward other users
Reverse engineering — Attempting to decompile, disassemble, or reverse-engineer the Platform or any games
Fraudulent activity — Using stolen payment methods, engaging in chargebacks in bad faith, or any other form of fraud

Violation of these rules may result in immediate account suspension or termination, forfeiture of account balance, and reporting to law enforcement where applicable.

9. Intellectual Property

All content, software, trademarks, logos, and intellectual property on the Platform are owned by or licensed to Challenge LLC. You may not copy, modify, distribute, or create derivative works from any Platform content without our prior written consent.

By using the Platform, you grant Challenge a non-exclusive, worldwide, royalty-free license to use, store, and analyze your gameplay data for purposes of operating the Platform, improving our services, ensuring fair play, and generating anonymized analytics.

10. Developer Terms

If you register as a developer, the following additional terms apply:

Games must be submitted and integrated via the Challenge SDK
Developers receive a revenue share (approximately 4.5%) of entry fees from matches played in their games
Games must comply with all Platform guidelines and ensure that outcomes are determined predominantly by player skill
Developers are responsible for the integrity and fair operation of their games
Challenge reserves the right to remove any game that violates Platform policies or is found to have integrity issues

11. Tax Obligations

You are solely responsible for reporting and paying any taxes owed on your winnings. Winnings from skill-based contests are considered “Other Income” for U.S. federal tax purposes.

Challenge may request tax documentation (such as a W-9) as required by applicable law
Challenge will comply with IRS reporting requirements, including issuing 1099 forms when legally required
Challenge does not provide tax advice. Consult a tax professional regarding your specific obligations

12. Dispute Resolution & Arbitration

Please read this section carefully. It affects your legal rights.

Mandatory Binding Arbitration

You and Challenge agree that any dispute, claim, or controversy arising out of or relating to these Terms or the Platform shall be resolved through binding individual arbitration administered by the American Arbitration Association (“AAA”) under its Consumer Arbitration Rules, and not through litigation in court.

Class Action Waiver

You and Challenge agree that any arbitration shall be conducted on an individual basis only, and not as a class, consolidated, or representative action. You expressly waive any right to participate in a class action lawsuit or class-wide arbitration.

30-Day Opt-Out

You may opt out of this arbitration agreement by sending written notice to support@withchallenge.com within 30 days of creating your account. The notice must include your full name, account email address, and a clear statement that you wish to opt out of the arbitration agreement. If you opt out, you retain your right to bring claims in court.

Small Claims Court Exception

Either party may bring an individual action in small claims court for disputes within the court's jurisdictional limits.

Governing Law

These Terms are governed by and construed in accordance with the laws of the State of Florida, without regard to its conflict-of-law provisions.

13. Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW:

THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE” WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT.
CHALLENGE SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING BUT NOT LIMITED TO LOSS OF PROFITS, DATA, OR GOODWILL, ARISING FROM YOUR USE OF THE PLATFORM.
CHALLENGE'S TOTAL LIABILITY FOR ANY CLAIM ARISING UNDER THESE TERMS SHALL NOT EXCEED THE AMOUNT YOU HAVE DEPOSITED INTO YOUR ACCOUNT IN THE 12 MONTHS PRECEDING THE CLAIM.
CHALLENGE IS NOT RESPONSIBLE FOR ANY LOSS ARISING FROM TECHNICAL FAILURES, SERVER OUTAGES, OR INTERRUPTIONS TO SERVICE.

14. Account Termination

You may close your account at any time by contacting support@withchallenge.com. Any remaining balance will be returned to you via your original withdrawal method, subject to identity verification and applicable processing times.

Challenge may suspend or terminate your account at any time, with or without notice, for violation of these Terms, suspected fraud, or any other reason at our sole discretion.

In cases of fraud, cheating, or other serious violations, Challenge reserves the right to forfeit your account balance and report the activity to relevant authorities.

15. Responsible Gaming

Challenge is committed to promoting responsible play. We offer tools including self-exclusion options, deposit limits, and cool-down periods. For full details, please see our Responsible Gaming Policy.

If you or someone you know has a problem with compulsive gaming, please contact the National Council on Problem Gambling at 1-800-522-4700 (call or text) or visit ncpgambling.org/chat.

16. Modifications to Terms

We reserve the right to update or modify these Terms at any time. When we make material changes, we will notify you via email or by posting a prominent notice on the Platform. Your continued use of the Platform after such changes constitutes acceptance of the updated Terms.

We encourage you to review these Terms periodically to stay informed of any updates.

17. Contact Information

If you have questions about these Terms, please contact us:

Email: support@withchallenge.com
Company: Challenge LLC