I am glad you chose chess, I think I suggested it, in another thread.
Try get funding on "reddit" too.
Do you have the developers for this already? 1 BTC does not seem to be enough, for something like this though.
You should host tournaments, where a portion of each persons contribution, when he plays against someone else, goes towards the tournament prize, they compete for.
How are you planning to draw people to your site?
Yes.
My coder said that he will charge 1 BTC for the whole work.
I never used reddit but i will try.I just need a one big donator who can donate 0.9 BTC.
Thanks all for your interest