If this Chuck fellow suddenly got hit with a big hotel bill due to low room bookings, that could well explain his tournament winnings payout shortfall.
What was it Jay said? Initial rate was $1500 a day and then the hotel (due to low room bookings) wanted $35,000? That's a HUGE difference, especially if you're counting on the former rate.
Plus, hotel people can be true scumbags. I know this from experience. About 15 years ago, I ran a little sci-fi type convention here in Atlanta for a couple of years. Both years, different hotels - both hotels that had had similar events held there in the past over the years - both found ways to screw me out of some extra cash.
The first one, less than a week out, tells me that they can't supply the number of folding chairs I had requested - said request being put in months before - and that I had to pony up an extra few hundred practically on the spot to cover outside rentals.
The second one, there was a small typo on the contract - considering the current subject, ironically, it had to do with ballroom space discounts based on rooms booked. It was a sliding scale - 0-50 rooms no discount, 51-100 rooms, X discount, etc. The typo was that there was a gap in the sliding scale - went like 51-100, then 151-200 or somesuch. My room bookings fell into the gap, so they chose to interpret this as meeting the lower discount as opposed to splitting the difference. Of course, they call me into their office to tell me this - and the hotel rep I'd been dealing with face-to-face this whole time conveniently wasn't there, but told me this over speakerphone. Classy. Oh, and then they said "Oh and we've gone ahead and charged your credit card for this difference already".
If the hotel isn't getting paid, and I mean *right then* - they won't let you pay them AFTER the event - they will close the doors on you. They know you have no alternatives, other than to cancel your event - and they count on having that barrel to roll you over onto.
As several posts have cited lower-than-expected attendance and room bookings at Chuck's event, it wouldn't surprise me in the least if something similar happened to Chuck, and he was left with two choices - cancel the event and deal with THAT massive fallout, or pay the hotel and let the event go on, and figure out how to deal with the cash issue later.