Puckett always claimed to be the champion of Arkansas...
...or whatever state was one or two states away from whatever bar he was playing in.
After cleaning out the bar he would explain "I said I was the champion of Arkansas".
But as for real state tournaments, I have not seen any with a residency requirement, not do I think it would be a good idea. Heck, in Texas, if you live in Lubbock, you need a three-day vacation to drive to a one-day event in Houston. Distances are much shorter for players near the east coast - they can play in four or five states without having to book a room more than one night.
And Alaska, well I would bet the champion of Alaska *is* a resident of Alaska, just because of the travel distances involved.
As for Arizona and Nevada, the price of air fare to Phoenix or Las Vegas is almost always extremely high, which could restrict entries from distant states.
There are all kinds of ways to get around residency requirements. For years, Texas high school football was a mess, what with all the alumni and coaches trying to finagle ways to get the family of good players to have an address in the feeder area of whatever high school they wanted want them to play for. Odessa Permian was one of the worst of these, but before the state broke the system Permian high school football teams had won a six-pack of state championships and two National titles, plus several near-wins.
It was rumored that some players in their 20s quit their oilfield jobs to go back and play for Permian again, because it paid better...
So I vote for 'no residency requirements' simply because it will add one more layer of potential controversy which Pool does no need.