Sandbagging, or keeping your handicap artificially high to win those type of tournaments is the most common issue with real golf tournaments. In theory, the handicap keeps the playing field level but in reality it puts more pressure on the better players.
Our WGT country club had a handicap tournament a month or so ago, basically just took the averages of the people playing and I think used a course average of 71 and then 80% of their difference to par as a penalty or a handicap depending upon the average.
It can be done but the same people in the middle tiers who manipulate their scores will win because the handicaps will be manipulated in the same fashion.