I had a similar situation come up with my LGS. They recently started running tournaments with the following payout guaranteed:
1st: $100
2nd: $50
3rd-4th: $25
5th-8th: $10
For additional rules, they required preregistration, had a 24 player maximum, stated that players could not split prize in Top 8, and could not Intentional Draw in round 5 (and that round 5 would be untimed, presumably to prevent playing for an unintentional draw). When I pointed out that sanctioned tournaments had to adhere to the MTR, and thus IDs had to be allowed, they chose to hold it as an unsanctioned tournament.
Now, to the best of my knowledge, in unsanctioned tournaments you can use whatever house rules you want, but it seems to me that they were being rather stubborn here. I mean, with cash payout, one would assume that you'd want to ensure tournament integrity by having it sanctioned (and possibly run it at Comp REL). It's just been bugging me: can they have an unsanctioned tournament for the purposes of disallowing IDs?
EDIT: Sorry for thread necromancy, but this seemed to fit in with my situation,so I didn't feel making a new thread was necessary.
Edited Hank Wiest (June 3, 2015 11:14:20 PM)