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Nintendo Cracking Down on Unlicensed Tournaments
(en-americas-support.nintendo.com)
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Exactly. These rules only apply to tournaments that can’t or won’t get a license. It still sucks since Nintendo not only won’t support Smash tournaments or their players, but they also expect a “cut” in the form of a license fee and permission to enforce whatever rules they want
Edit: For example: Melee Coinbox (and partially Ultimate Coinbox) do not follow these rules. The events are unlicensed with greater than 300 entrants, I don’t know if they are for profit, but they use game imagery for advertising, and they do not use Nintendo’s online servers. Under these new guidelines, Team Liquid runs the risk that Nintendo will come after them and force them to shut the events down or pay for a license (They might already have one, but Hbox was implying they do not)