I want to ask you about your opinions on an idea about promoting competitive programming at my university.

The rough idea is like this:

When there is a rated round on codeforces, people in my university can have a choice to pay a little amount of money, say $1, to me to compete in that round. And after that round, competitors who do better will earn money from competitors who do worse. I don't make money by doing so, which means all the money collected will be distributed according to the competitors' performance. I hope this will make the game more excited and attract more people, just like in RPG games.

There are still details I don't work out. For example, how to distribute the money? How to distinguish coders with different skill level, so that everyone will have the chance to win money?

Please kindly provide your advice on the idea. Do you think this idea is viable or not? Or are there platforms like this already? Or do you think this idea is completely inappropriate.