Firstly, I'm not sure if this is the correct forum, if not I apologize.

I own my own forums, its just a small community that play the same online game. I've decided to make the forum as fun as possible by adding an arcade and other features in the future. One of the features I plan to add is a forum currency, this is where I need some advice. I want to add a gambling forum where members can bet against each other or the booky (myself) using the forum currency. Although it IS gambling because we will be using forum currency (fake money) is it legal?

Lets say it is legal and I can proceed with my gambling forum plans. If I was then to add an option where members can buy forum currency (use real money to buy fake money) and then gamble with the forum currency, would it still be legal? I would not be paying any taxes or declaring payments I receive for forum currency.

Then my plan is to make it so players can "cash out" their forum currency for real money. They'll make bets against the booky (myself) using the forum currency that they will buy with real money. When they cash out I will exchange the forum currency for real money payment.

To me this seems like a business but its just for fun and to make/lose a couple of £ here and there.

Basically I want to know how legal all this is and how far I can go before it will be illegal, maybe its all fine until real money is involved.

I hope I explained this well enough.