Editing Openai/69177b63-caec-8000-a009-8936c37238c5 (section)

=== ✔️ Applying the Texas Rule §3.298(c) to Your Tournament ===

===== Texas says entry fees are not taxable as amusement services if either of these is true: =====

===== (1) The fee is paid to compete in a contest, and part of the fee offsets the cost of conducting the contest or prizes. =====

This matches your setup exactly:
* The store is free to enter.
* The only reason someone pays is to play in the tournament.
* Part of the fee supports event operation and prizes.
* Not everyone necessarily gets a prize (normal for contests).

This is the classic structure of a contest, not an amusement admission.

===== (2) The individual would not normally pay to use the facility except for participating in the contest. =====

Also true — people only pay when they choose to enter the tournament. The store's normal use (shopping, browsing, playing casually) is free.