Hello ! We will be organise racing torunament with prizes and entry fee.Does we will need license for this ?
I searched in site but do not view anything for tournament license.

Hi!
If this tournament is an online event and demo content is good enough for you, you probably don't need a license for it.

If you are not sure, ask the developers (but please, include as much detail as possible): https://www.lfs.net/mailus

Info about LFS for commercial use (a simple online tournament with/without prizes in LFS does not fall into this category in my opinion, just pasting it here as semi-related): https://www.lfs.net/commercialuse