Ask a Canada Law Question, Get an Answer ASAP!
They are incorrect. They do not have a right to compete in your privately run contest. You could offer them a privilege to do so but there is no right and there is no way that they can compel you to allow them to enter and there is no way that they could sue you successfully for damages.
There is no lawyer that is going to tell them they should sue. That is utter nonsense as they do not have a legal right to participate in this event.