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#4011
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I was actually thinking of becoming a dancer. Maybe I'll even gain some fans and lure them into the "Crimson Dawn"!

Added 5 minutes later
As a reward, you'll get some lousy loot that you won't even need anyway, since you've already taken care of everyone with your gear (and which not every character can collect in terms of role-playing), and a little money, which you won't be able to buy anything with for the same reason.
I don't quite agree; there's often good loot from early opponents. If you're a little lucky, you start with decent loot, but you get even better loot as you progress. The monetary reward varies, but it can be useful. And you often get a bigger income from bets. Plus, stat bonuses, skill points, and unique abilities are also sometimes awarded, which is nice. However, such rewards often aren't worth the risk, which is true.
In general, if I were running tournaments, I would only have an entry fee, without the chance of dying or losing your loot. And the characters would fight in their own gear, or in standard gear for their skills.