California Restaurant/Bar offers Hold'em Tourney

I was at the National Sports Grill in Anaheim for lunch and noticed they offer a free Wed. night poker tournament with 'points' and gift cards as prizes. They also have a Sat. tourney coming up with a $500 entry fee into a real money tournament.

Given the prizes (I don't know what the points are for) is this legal in California in a city that does not have licensed poker rooms?

This is a new thing that is going around several states. I have played in a couple of these here in NC and the competition is very weak for the most part. Its much like being in one of your home games and nobody folds which is why 7 2 can destroy AK. I ran into a couple of decent players but I still coundnt put them on being as good as me and I dont feel I'm that good. I'd play it if you want that free entry. The point system is the money in this case, but everyone gets points just for showing up. Its all legal because there is no buy-in and everything is free. Its just an incentive for the bar to get more people to come and spend money. Its the new "hook" to get more business. "Hey, isnt that the game they play on tv? I think it is, well, shoot, its free, lets give it a try, looks easy enough. Yeah, can I get a beer and some wings." HOOKED.