the room owner and the person that put it on are both involved and profit from the event. so both are responsible for the money. and an easy small claims court or police report will make a big difference in getting paid.
to just let it go is foolish as you got cheated and stolen from.
just because a person takes what isnt his and the prize fund isnt his to keep;
it is a form of embezzlement and a felony which entails maybe jail time. so the person who stole it, not being a run away thief, is going to have a major headache and make it good.
it has no bearing on how he lost it. if it was stolen from the bar his insurance gets involved.
if an individual held it then it is felony theft.