Bottom line, do the powers that be have the time, money and inclination to litigate against something so asinine? The answer is no. There will be no lawsuits, there will be no penalties, this means nothing. Just play where you want and ignore the fine print
Seriously.
Folks think litigation is easy and you just file papers and bam, you win. It takes time, money and lawyers. They would spend thousands of thousands of dollars with no chance of collecting a dime from a pool player. Trust me, play anywhere you want, nobody is "coming" for you. lol
Of course, they could use it as an excuse to not allow you to participate in another of their tournaments. But, that's only if they are checking names of players who entered, and I doubt they are going to stop any big names from playing again. Just silly.