Ironman have agreed to forfeit the amount after the US Department of Justice decided that the Kona lottery system, whereby potential entrants can pay a fee and potentially get an entry by ballot rather than qualify on merit, fell foul of US lottery and gambling laws. The 100 successful entrants from the lottery would then have to pay the original $850 entry fee, but the $50 fee was non-refundable for unsuccessful entrants. 

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