I could see something like this manifesting in the event that the RMAH needs a jumpstart... Blizz announces a $$$ prize for a PvP arena match and all of a sudden people are shelling out hundreds to buy the top gear from the RMAH in the hope of winning thousands.
I doubt it. Competitive PvP and RPG don't blend well together. If someone can get edge with superior gear there never won't be any serious competition.
that's a double negative man... syntax aside that's irrelevant because just as with any other game played for money, the bads don't play against the pro's - high stakes poker players don't play $1-2 games against casuals, mike tyson doesn't fight old mate john for $30. If
I had a decked out character I wouldn't waste my time pwning small fries for 30c, I'll be taking on the big dogs for $50, just as I wouldn't pitch my newly 60 character in a big tournament.
gambling laws are very iffy. each country and state has different rules that would need to be followed. i am sure someone could find away to get around most of them but from a pr point of view its probably better to just provide prizes without forcing a entry fee.
I would be interested in getting into the ring if diablo 3 was an e-sport, although considering how often I got "pwned" in d2 I think my chances of getting anything but embarrassed are pretty slim. I am also interested in knowing what the gambling laws are. Wish this site had someone in the know about legal stuff.
edit: I have a 40 hour a week job too, so that would probably limit my efforts as well lol
edit2: I probably wouldn't in all actuality pay any entry fee to enter any kindof a contest since as I said before I'm pretty poor and I'm pretty sure I'd be pwned.