As Ness points out, you are certainly able to organize any tournament you want as long as you don’t involve POP or Pokemon. com. We really don’t want to ruin your fun; companies just have to be careful about these sorts of things.
It is the same reasoning that makes us ban all events held in private residences. There is a PTO who holds an annual tournament/BBQ/pool party at his house. He invites all the local players and their parents. This event is not only perfectly wholesome; it is an awesome promotion for organized play. I am absolutely certain that every one of those children is perfectly safe. I still just about swallowed my tongue when I saw that he had sanctioned an event held in a private residence on our website. Words were had; won’t happen again. Unfortunately that is just the way the world works.
Sorry, maybe I'm dense here, but what is the problem with an event in a private residence? We hold a booster draft for my son's birthday every year in my living room. Obviously, as a birthday party, its an invitational, but could this not be sanctioned? Would it be different if we held it in the community clubhouse?