Let's talk more in depth about where we can make Chancecoin transactions faster. When you place a bet, the first thing that happens is it goes into "pending" state, which means that you've sent the transaction successfully, but it hasn't been confirmed yet in the Bitcoin blockchain. It takes an average of 10 minutes for a transaction to be confirmed by the Bitcoin blockchain. It's possible for us to use an alternate Blockchain (such as Dogecoin or NXT) for betting transactions in order to speed up this part of the process. One possible drawback is that Chancecoin users would need to have Dogecoin or NXT funds available in order to take advantage of such a feature.
The other possible solution is to go back to using the Bitcoin blockchain hash as the source of randomness. The drawback here (as has been previously discussed) is that someone with a lot of hashing power could manipulate Chancecoin by waiting for a hash that is favorable to them. Note that this isn't exactly the easiest thing to do. A miner would literally have to decide to throw away a block (along with the 25 BTC + fees reward) if the hash doesn't favor their Chancecoin transactions. I propose that we go back to using Blockchain hashes as our source of randomness for transactions in blocks where the total amount of CHA that can possibly be won (for all bets in the block) is less than 2,000 CHA. If the total amount that can possibly be won exceeds 2,000 CHA then the NY Lottery numbers would be used. This should sufficiently minimize the incentive to manipulate blocks. Thoughts?
What about launching your own chain (based on NXT or BC code for example)? Then these transfer fees could be deducted from the winnings, and paid out to nodes holder whose sole role will be maintaining this transactions blockchain.
You also reminded me where I heard this discussion and the solution presented there - indeed, using BTC itself might be the solution, just take each block hash (or portion of it) as the source. Mounting an attack is possible (see the relevant ghash.io / Satoshi Dice thread), though I pretty much would rely here on the miner community, who seeing this will quickly abandon such pool. Having big bets still coming from NY lottery (where any fraud would be much more seriously treated), is also a good option.