I don't think teams ought to expect a refund. Pulling out two weeks before for no other reason than they no longer want to play is not sufficient reason for a refund. Citing regulations on on out of state tournaments that the teams were willing to ignore before league season was supposed to start in a couple of weeks is again, not a reasonable reason to expect a refund.
My dd's team is scheduled for a PHX tournament on March 27-28. I would like to pull out of that, but don't expect a refund. I just would hope to save the time driving and the money on hotels.