Does anybody know the West Virginia legalities for paying entry fees to win cash prizes?

I am wanting to continue an endeavor where we have tournaments in our local city. Each person pays an entry fee of $10. I get 25%, the owner of the location and supplies gets 25%, and the winners get the remaining 50% divided for 1st, 2nd, and 3rd. I am wondering if this is legal in my staate, because I just caught wind that it may not be. Please help.