Have you all read the European guidelines? They are relatively reasonable, and actually enforce that prizes can and will exist.
Highlights:
Organizers are allowed to make money off of ticket sales and entry fees, but those fees are limited to £20 per person, and of course, following the guidelines. Entry fees can feed into the prize pool, while ticket fees must go towards organization.
Tournaments are limited to 200 people in person, 300 online.
Prizes are allowed, but the maximum prize may not exceed £5000, with total prizes amounting to £10000 in 12 months.
No Sponsors aren't allowed.
Organizers are allowed to monetize any footage after the tournament, for up to 10,000 per year.
If anything, I really think these guidelines make grass roots organizing way easier, as most tournaments easily fall into these guidelines. This mostly discourages big tournaments such as EVO, but not small tournaments at all.
It sucks that there are regulations at all, but the European guidelines are actually semi reasonable.