Legality of setting up private online game?

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Blown01Cobra

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Dec 7, 2012
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I've noticed that a lot of sites have their own private tournaments hosted by various poker rooms, similar to the freerolls that are only available to members with certain passwords, etc.
I know in the U.S. that many private games that aren't considered penny ante games are illegal, so I was wondering what the rules were if I wanted to set up a private game with a cash entry, but am not the actual person hosting the game.
For instance, what if I wanted to set up a private tournament for a few friends and me and then everyone pays $10, and I give them a password to use to enter the tournament at ACR or juicy stakes. Is this legal? Couldn't it be considered they're just paying me for a password or they're just gifting me money and then I'm coincendtally setting up a tournament for them.
Just wanted to know if anyone knew the laws on this.
 
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