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Why not start the competition funded by the users, then seek a sponsor later? This competition may be expensive, so maybe a sponsor won't be willing to pay everything. With completely news rules, of course.
I think the option of a competition with no sponsor should only be followed as a last resource.
It's a good idea, but I'm sure the prizes will be more interesting with a sponsor. But it would be an interesting idea to test as another Side Competition, so 3 competitions total! There could be a competition where users would pay a buy in, that would be used as a prize pool (just like in poker tournaments). If we get a sponsor they could put some added bonus, or a guaranteed prize pool (just like in poker as well).
Actually, this seems to have given FrueGreads some new ideas for the competition - let's see what else he's going to come up with.

i hear about directbet will be closed huh? omg this is my favourite gambling site . and how about this contest? will change the name? or find the new sponsor? but i think the best sponsor is only directbet!
DirectBet was very good to us, but we are doing our best to find a great new sponsor, tyoA7X.
The name of the competition itself will likely remain the same, however: "Tipster Competition" - the "sponsored by" bit in the thread title will need changing, of course.