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I think cost would be the biggest issue. You would be asking people to invest a lot of money in something they may not be able to use after the competition, meaning they may not have the room for another tank at home. Finding a place to rent would also be difficult I would think. We have trouble finding places locally to hold frag swaps because of the money wanted and/or they don't want all that water in one area. I would think you would want each person to pay for their own electricity so you would have to come up with a way to do that.
There would also need to be a way to keep the tanks secure. Competition can foster innovation but it can also bring out the worst in people.
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