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Using the game for a tournament is NOT illegal as you're just publicly utilizing your copy of the game (which you paid for).
HOWEVER, you could run issues on the prizes as some places in the US (& possibly in Canada) do not permit cash prizes for tournaments... but you'll need to check your federal & regional laws to be certain.
If it's a small-scale tournament (only publicized by word-of-mouth / flyers), you'll likely get away without problems.