From my understand of Ouroboros, POS functions based on a lottery based system and random number generation.
My question is, how will this avoid legal issues of being an unlicensed lottery? If this wasn’t based on a financial system I could see how this wouldn’t be relevant, but in the case of ADA isn’t this an area that would bring regulatory issues to the system?
Typically to avoid such regulatory issues a lottery system would involve an element of skill required by an individual to participate thus becoming a skill based game rather than a lottery. I cannot see that an element of skill is part of Ouroboros and therefore (although possibly a stretch) participating in staking would mean we are participating in an illegal and unregulated lottery eg Gambling.
Another method in some jurisdictions is to allow a free entry method, again I do not see this in Ouroboros.
Perhaps this element of the law hasn’t been considered? Is this something Cardano should be concerned about? Does Ouroboros need an equivalent skill based or free entry route to avoid such potential issues?