It’s more like a $5 rule for new players, because of how easy it is to just fabricate 5 “events” simply to get rated.
I.e. have everyone who wants to get rated play a single one-ball game for a dollar, top two play one more ball for “playoffs” and boom, you’ve got a “tournament” for 0.01 points. Do that five times, now all those people count for future events.