What kind of gamers are you looking to get to play against each other? Actual professional gamers or amateurs?
It'll be pretty difficult to find people who would be willing to play in what's basically a casino, I don't think it's a good idea to try and get people to come over to a physical place and have gamblers make bets on those matches.
I really doubt that the quality of those games would be enough and how would you even calculate the odds, if you're not working with professional teams? Or will you pay pro's to come and play there?
What are your thoughts about coming them over to a physical place?
Mostly amateurs that have good skills, that's why they're going to show off in online games first and go to the physical place later to play on LAN. The odds are going to be calculated with statistics from online matches. I guess there're going to be professional teams too if the payout is enough. If they can get 50-100$ a day each, it's not that bad for a gamer.
What you are trying to create already exists and is called either ESWC , dreamhack , All stars or the challenges that in any comic con or gatherings alike and you are just trying to reinvent the wheel while doing this project , even the gambling idea about such people does already exists and lots of either bitcoin or fiat casinos has integrated such bets in their lists .
Such sports are highly penetrable by people that want to change the result of such games for their own profit though and any team that lacks sponsors or funding will be happily accepting a 100k dollars deal to loose a certain game over winning it and loosing the next one and getting out of the competition empty pocketed ..
I understand what you're saying and those are tournaments. What I'm thinking about is doing a 24/7 place for gaming. Imagine 24/7 matches and tournaments. I agree, I'm still thinking about fairness.